CorD Magazine July 2020 issue 189 by CorD Magazine

H.E. ANTHONY GODFREY

BRANKA PARLIÄ&#x2020;,

H.E. JEAN-LOUIS FALCONI,

Why Not?

The Art Of Pure Sound

There Are No Quick Fixes, Dialogue Is Necessary

Ambassador of France to Serbia

JULY 2020/ ISSUE NO. 189

Pianist

www.cordmagazine.com

U.S. Ambassador to Serbia

interviews opinions news comments events COMMENT

Parliament Without An

OPPOSITION FOCUS

LONESOME VICTORY

Exclusive

ALEXANDER SCHALLENBERG

783002 771451 9

Serbia Is A Frontrunner In The EU Accession Process

ISSN1451-7833

AUSTRIAN MINISTER OF FOREIGN AFFAIRS

CONTENTS

COMMENT

PARLIAMENT WITHOUT AN OPPOSITION The 21st June elections were a logical epilogue to the terminal stage in a process that began with the 2016 parliamentary elections: it was actually on election night in 2016 that the ‘Savamala’ demolitions happened, only for Progressive torches to be lit on roofs in response to the opposition pounding on pots and pans some four years later, in the age of the Coronavirus

08 SERBIA IS A FRONTRUNNER IN THE EU ACCESSION PROCESS ALEXANDER SCHALLENBERG Austrian Minister of Foreign Affairs

@CORDMAGAZINE

CORD MAGAZINE

EDITOR IN CHIEF: Ana Novčić a.novcic@aim.rs DESIGN: Jasmina Laković j.lakovic@aim.rs CONTRIBUTORS: Rob Dugdale, Maja Vukadinović,

July

22 LONESOME VICTORY

FOCUS: What The Elections Brought Us?

26 WHICH ECONOMIC STIMULUS WORKS? FEATURE

* RETURNING TO REGULAR FLOW

MUSEUM OF ART 48 FACES & PLACES 50 THE ART OF PURE SOUND BRANKA PARLIĆ Pianist

SERBIAN ECONOMY

27 BUSINESS DIALOGUE 40 THE GOD OF TECH

12 WHY NOT?

H.E. ANTHONY GODFREY U.S. Ambassador to Serbia

18 BAD DAY AFTER A TOUGH NIGHT

OPINION: Serbia After The Quarantine

Mirjana Jovanović, Miša Brkić, Ljubica Gojgić Radmila Stanković, Steve MacKenzie, Zorica Todorović Mirković, Sonja Ćirić, Miloš Belčević EDITORIAL MANAGER: Neda Lukić n.lukic@aim.rs PHOTOS: Zoran Petrović COPY EDITOR: Mark Pullen

ELON MUSK Tesla and SpaceX CEO

54 CHILL OUT

43 MUSIC BEGINS WHERE WORDS END

16 GLOBAL DIARY @CORD_MAGAZINE

ZORAN PANOVIĆ

TRANSLATION & EDITING MRP EDITORIAL SALES MANAGERS: Biljana Dević, b.devic@aim.rs Nataša Trifunović, n.trifunovic@aim.rs Vesna Vukajlović, v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs

GABRIEL FELTZ Chief conductor of the Belgrade Philharmonic Orchestra

44 150 YEARS OF THE METROPOLITAN OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs FINANCE: Dragana Skrobonja finance@aim.rs GENERAL MANAGER: Maja Vidaković m.vidakovic@aim.rs PUBLISHER: Ivan Novčić i.novcic@aim.rs

DIRECTOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com PRINTING: Rotografika d.o.o. Segedinski put 72, Subotica CorD is published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia

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Comment

Parliament

Without An Opposition

BY ZORAN PANOVIĆ

hese are symbolic points. Just like the intrusion of Dveri leader Boško Obradović into the Republic Election Commission in 2016, and the physical attack on the Progressives during the election/boycott campaign in front of the National Assembly. The circle has been closed: Between 2016 and 2020, standing in parallel with the construction of highways, factories, hospitals and shopping centres, is the collapse of democracy and parliamentarianism in this country, which - according to the latest Freedom House report – is, with its hybrid regime, no longer even a semi-consolidated democracy. Since 2016, Vučić has sharpened his policies in Serbia, increasingly strengthened the authoritarian system of government, only to reach perhaps his historical maximum in the last elections, with a convincing two-thirds majority in parliament. And with that he can begin getting to grips with changing the Constitution. With the Progressives as the dominant party (the people’s clientelistic movement), the Socialists in a vassal position and the constructive SPAS of Aleksandar Šapić, along with the odd minority party, Serbia gained a parliament without an opposition, three decades after the introduction of a multi-party system, confirming – also with a ‘Belarusian model’ – that its multi-party system, as a fundamental democratic institution, is in a deep crisis.

July

The 21st June elections were a logical epilogue to the terminal stage in a process that began with the 2016 parliamentary elections: it was actually on election night in 2016 that the ‘Savamala’ demolitions happened, only for Progressive torches to be lit on roofs in response to the opposition pounding on pots and pans some four years later, in the age of the Coronavirus Although Vučić would certainly have won even under much more democratic conditions, that victory would certainly not have been so ‘horrifying’. This kind of parliament is not representative, because it does not reflect the mood in Serbian society. These elections have not resolved the fundamental contradictions of the society, nor will they reduce the hatred within it. It will only deaden them in the short term. Serbian democracy, paradoxically, depends solely on Vučić’s rationality. Certainly more than the strength of the opposition, which - with a turnout slightly lower than the average over the last ten years - convinced itself that the boycott succeeded, by also adopting those who did not vote due to their general disgust with politics, including the opposition. Since the beating of opposition figure Borko Stefanović, which was an impulse for awakening the anti-regime consciousness, the opposition has not succeeded in getting serious in terms of both organisation and leadership. Torn between vanity and a meaningless dilemma - citizens or parties!? After 21st June, there is an unquestionable impression of “a single-party system with multiple parties”, which is a reflection in the mirror of “non-partisan pluralism” that was offered as an alternative model to the multi-party system three decades ago by academic Mihailo Marković, the first ideologue of Milošević’s SPS.

It would be a precedent for a country that has a kind of one-party system, simulations in election processes and its players, or which treats its real opposition as anti-systemic, to enter the EU. This composition of the parliament is culturally atypical for democratic systems, and hence there is one important paradox of the government – the more impressive Vučić’s victory is, the more discreetly there is the impression of a Pyrrhic victory, the risks of which few Progressives are aware of except Vučić. The opposition will wait for Vučić to ‘slip’ on Kosovo, consoling themselves in order to annul his ‘illegal’ decisions, because that certainly won’t get them the support of those who support Vučić from the field precisely precisely to make those difficult decisions. Even Bolshevik leader Lenin constantly emphasised to his comrades that there was no “ideal revolutionary situation”. It will be tough for that to be the presidential elections of 2022, by which time the opposition must find a “new Koštunica”. A lower turnout in Belgrade instilled hope in the boycott opposition that the capital could be taken from Vučić in the Belgrade elections that also follow in 2022, although the 2018 elections were really perhaps the last ones in which all important players participated.

Interview Exclusive ALEXANDER SCHALLENBERG AUSTRIAN MINISTER OF FOREIGN AFFAIRS

The global diplomatic lockdown, caused by the Coronavirus pandemic, was broken with the Austrian foreign minister’s visit to the countries of the Western Balkans. He came to Serbia bringing medical assistance and an offer that, if required, patients with Covid-19 could be treated in Austria. In this interview for CorD Magazine, Minister Alexander Schallenberg reiterates his support for Serbia’s European integration, which, as he notes, depends on the speed with which Serbia implements reforms and meets the criteria set. How would you summarise your overall impressions following the culmination of your mini tour of the Western Balkans, during which you visited Serbia and Kosovo, as well as Albania?

Fotocredit BMEIA-Wenzel

The visit to Serbia, Kosovo and Albania was my first visit abroad since the outbreak of the Covid-19 pandemic. The Austrian government has decided to send medical equipment and test kits to the region as a sign of solidarity

Serbia Is A Frontrunner In

The EU Accession Process What happens in the Western Balkans directly influences Austria. This is why we have such a clear interest in the stability and economic prosperity of Serbia and the entire region. We believe strongly that Serbia and the other countries of the Western Balkans firmly belong in the European Union - Alexander Schallenberg 8

July

BILATERAL RELATIONS

DIALOGUE

Austrian-Serbian bilateral relations can weather good and bad times – and indeed it is our goal to offer support, particularly in times of crisis

and support. We have also offered to treat ICU patients from Serbia and other countries of the region in Austria. The visit showed that Austrian-Serbian bilateral relations can weather good and bad times – and indeed it is our goal to offer support, particularly in times of crisis. My impression of the visit was very positive. I have seen a strong commitment by Serbia to tackle the Covid-19 crisis and its consequences with determination and efficiency, and an eagerness to re-open the economy and social life of the country. This phase is a great challenge for all of us.

I underlined the importance of resuming the dialogue in good faith as soon as possible, under the facilitation of Miroslav Lajčak

is committed to work towards achieving this goal. We have a strong interest in the success of this process. There is no doubt: the closer the U.S. and the EU work together on this, the better we can support the parties to come to a solution. What we need is a comprehensive solution that is durable and in line with international law.

We believe strongly that Serbia and the other countries of the Western Balkans firmly belong in the European Union

You have stated that cooperation with the countries of the Western Balkans remains high on Austria’s list of priorities. In which directions could this cooperation develop?

Our bilateral relations have developed very positively over recent years, based on very strong historical, political, economic and human bonds. The countries of the Western Balkans

We had a very good and frank exchange on many topics, also concerning Kosovo. I underlined the importance of resuming the dialogue in good faith as soon as possible, under the facilitation of Miroslav Lajčak, the EU Special Representative for the Dialogue. Mirsolav Lajčak has our full support. All parties have a responsibility to reengage in the dialogue and I have the impression that there is a strong commitment to do so among all parties. I believe we have a good window of opportunity for the resumption of a meaningful and constructive dialogue. Could the EU bring that dialogue back under its wing? Kosovo’s president is openly turned towards the U.S. How would you comment on that?

Miroslav Lajčak is facilitating the dialogue, he is engaging all parties and stakeholders. He has the full support of the European Union. The aim of the EU facilitated dialogue is the conclusion of a sustainable, mutually acceptable and comprehensive agreement between Belgrade and Pristina that will contribute to long-term peace, as well as to the stability and security of the region. This requires the political will of both sides to come to an agreement. The EU

Fotocredit BMEIA-Wenzel

Did you get the impression that a favourable climate exists for the resumption of the dialogue on normalisation between Belgrade and Pristina?

There is no doubt: the closer the U.S. and the EU work together on this, the better we can support the parties to come to a solution. What we need is a comprehensive solution that is durable and in line with international law

belong to our immediate neighbourhood. What happens in the Western Balkans impacts Austria directly. This is why we have such a clear interest in the stability and economic prosperity of Serbia and the entire region. We believe strongly that Serbia and the other countries of the Western Balkans firmly belong in the European Union. We will therefore continue to support the region and Serbia as a frontrunner in the accession process, to advance on the path towards full EU membership. Austria will also continue to support the necessary reforms and the improvement of regional relations, in

July

Interview Exclusive to a reduction in interest in investing in countries like Serbia?

It is quite obvious that we will all face the economic consequences of the Covid-19 pandemic. The Austrian government has therefore decided on a very significant financial package of around 50 billion euros to support our citizens and businesses. Every crisis opens up new opportunities and I am sure that Austrian companies are assessing new business opportunities in Serbia very carefully. Austrian investors have been present in Serbia and the region under difficult circumstances in the past. They are here for the long term.

Fotocredit BMEIA-Wenzel

The media noted that your Balkan tour was your first trip following the end of the global lockdown caused by Covid-19. What is it like to enjoy the return of direct meetings with people?

It was good to see Ivica Dačić and Jadranka Joksimović in person again - such direct contacts are essential for diplomatic progress. We still had to keep the necessary distance for preventative health reasons. We wore masks and did not shake hands or embrace.

particular the resolution of bilateral disputes. This will be to the benefit of everyone. Political players within your country continue to insist that the Western Balkan countries should become parts of the EU. You have advocated strongly for the opening of accession negotiations with North Macedonia and Albania, which are still being awaited. Could it be said that those who are enthusiastic about enlargement are becoming a minority in the EU?

I don’t think that this is a fair assessment of the situation in the EU. On the contrary, what we have seen during the last presidencies, including the Austrian presidency in the second half of 2018, was a strong recommitment of the EU to the Western Balkans. The Western Balkans are at the top of the EU’s agenda. We hope that the new methodology will lead to the re-invigoration of the enlargement process, in particular through enhanced political engagement. But it is also important to see a reinvigoration of reform efforts in the candidate countries, particularly on the fundamental question of the rule of law. We need to have a positive dynamic in the enlargement process. The Zagreb Declaration, as the latest EU document on the Western Balkans, refers

July

The Western Balkans are at the top of the EU’s agenda. We hope that the new methodology will lead to the re-invigoration of the enlargement process, in particular through enhanced political engagement only to the prospects of membership. Why is that?

Let’s not get hung up on semantics. Until all conditions are met to become an EU member and the accession treaty is in force, candidate countries indeed only have a “prospect” of membership, there is no entitlement to membership. Accession is a rigorous, “strict but fair” process. Recent analysis conducted by the World Bank warns of the possibility of the world economy plunging into a large-scale recession. Do you see hints of a crisis in Austria and will the newly emerged situation lead

The first few months of this year saw world diplomacy reduced to online contacts and addressing only a single topic – overcoming the pandemic. How will you remember that period?

The Covid-19 pandemic presented us with an unprecedented and highly demanding situation that affected each and every one of us, both in our private and our professional lives. The pandemic exposed the fragility of our highly interconnected economies and, indeed, lives. However, modern communications technologies and our welldeveloped networks of international cooperation – with our neighbours, within the EU and with countries around the globe – simultaneously highlighted the resilience and usefulness of this interconnectedness. Thus, constant exchanges with my counterparts - although on a virtual basis - became part of my daily routine, and exactly this - the utmost importance of close cooperation and coordination in times of crisis - is also what I will take away from this period. You brought aid to Serbia for the Red Cross at the end of May, as part of your support for citizens. Do you believe that

the idea of solidarity, which was revived by the Coronavirus, has returned to the world to stay?

Italy and other member states that were hit hard by Covid-19. Do you think that solidarity was lacking?

As far as Austria and Serbia are concerned, solidarity in times of crisis has been there before, such as in 2014, when we supported Serbia immediately after it was hit by major floods. It was clear to us that we will also show solidarity in this crisis. We have equally shown solidarity with our friends in the European Union, for example by treating ICU patients from France and Italy in Austrian hospitals or supporting repatriation efforts of other member states. The EU has also shown enormous support for Serbia and the countries of the Western Balkans: 93 million euros for Serbia in order to cope with the pandemic and its consequences. Overall, the EU supports the region with 3.3 billion euros. The EU certainly passed the test of solidarity.

As healthcare is considered a matter of national and not EU competence, we encountered some initial difficulties in this unprecedented situation. However, we very quickly realised collectively that we are not living in a Gallic village holding out against the Covid-19 pandemic. We realised that only together can we mobilise our resources to confront this global health crisis. The repatriation of hundreds of thousands of stranded European citizens, the delivery of medical supplies or the admission of intensive care patients perfectly demonstrate these acts of European solidarity during times of crisis. Solidarity and helping our partners in need is a matter of course for Austria.

With this in mind, the question of whether the EU passed the test of solidarity imposes itself, with criticism having come from

The government in Rome stated in June that Austria’s decision not to allow the opening of borders between the two countries was discriminatory. How would

you comment on that?

There was no discrimination at all – Austria is strictly applying one and the same principle to all measures when it comes to loosening Covid19related restrictions: As early as possible, as late as necessary. For some time, the epidemiological situation in some parts of Italy seemed to warrant special caution. As you know, by now this issue has been settled and I earnestly hope that we will soon be at this point regarding travel between Austria and Serbia. How will Austria treat Serbian citizens in that process, until the complete reopening of borders?

Austria is opening up borders gradually and according to epidemiological developments. We have opened borders with 31 countries. There are constant discussions going on among EU member states. We hope that the epidemiological situation will soon allow for the reopening of borders and the loosening of restrictive Covid-19 related measures.

July

Interview H.E. ANTHONY GODFREY

U.S. AMBASSADOR TO SERBIA When asked what current bilateral relations between the United States and Serbia are like, the American ambassador answers succinctly: excellent! Equally concisely, Ambassador Anthony Godfrey poses a counter question “why not?” in response to our question as to whether an idea exists for reaching a solution for Kosovo soon? In this interview for CorD Magazine, Ambassador Godfrey says that Washington’s policy towards the region will not change, regardless of who will be elected president of the United States in November. Early July sees Americans celebrate their Independence Day, and this year the whole of Serbia was invited to the celebration – a virtual celebration during the time of the Coronavirus marking the 244th anniversary of American independence. Ambassador Godfrey, this year’s U.S. Independence Day will be commemorated at a time when the country is confronted by great challenges. The struggle against Covid-19 is not yet over, with a large number of victims having been recorded in America. How will the 4th of July be celebrated or marked this year?

Why Not?

This is certainly a challenging time in terms of public health, and Covid-19 continues to pose a threat to the United States and other countries across the globe. We cannot let our guard down. But I am also confident that we will all pull through this crisis by working together. The images of Air Serbia planes flying to Italy to deliver assistance is something I will never forget. I am also proud that my own country could provide some

From my perspective, it’s entirely realistic to think that building stronger economic cooperation between Serbia and Kosovo is an achievable goal that will quickly bring concrete results. It would build trust and lead to improved cooperation in other areas. Perhaps real reconciliation between Belgrade and Pristina is within our grasp. There is no reason to delay - Anthony Godfrey 12

July

THE TRUTH

Hiding information from citizens erodes trust and undermines democracy, stability and even security. It enables corruption and abuse

$2.9 million in assistance to Serbia. The stronger international networks and the better global cooperation we establish during this period should help us confront future challenges, not only diseases, but maybe things like natural disasters too. Meanwhile, we have been thinking in recent weeks about how to mark Independence Day during a period when the public health situation is still somewhat uncertain. We have decided to take a careful approach. So, on 4th July, at 11am sharp, I’ll be hosting an online event to mark the 244th anniversary of the independence of the United States. I am inviting every Serbian to join us in this virtual celebration on our Facebook page. (Note: The web address is https://www.facebook.com/ USEmbassySerbia/live/.) The United States has obviously faced many challenges since we won our independence from Great Britain in 1776. That includes two world wars during which our two countries were allies. And throughout our history we have continued to adapt and grow as a country and a people. Americans also recognise that we still have problems to overcome. We are constantly trying to “create a more perfect union,” as mentioned in the U.S. Constitution. So I would say that we do have reasons to celebrate our national day, even if we are handling this year’s event a little differently than in the past. But I do hope your readers will join us on Facebook on the 4th of July.

DEMOCRACY

Democracy is not always neat and tidy. There must be debate, sometimes even loud arguments, and some displays of passion. But those are all ingredients of progress

to reflect on the situation of African Americans in the U.S. today, and to think about how we can move forward together as a society. “Liberty and justice for all” is a bedrock belief for Americans. Our Declaration of Independence declares that all people are created equal. We must all do more -- collectively and individually, in the government, in the workplace, and in our towns and cities -- to ensure that each and every one of us truly is equal. Our ideals need to become a reality for every sin-

“Liberty and justice for all” is a bedrock belief for Americans. Our Declaration of Independence declares that all people are created equal. We must all do more -- collectively and individually, in the government, in the workplace, and in our towns and cities -- to ensure that each and every one of us truly is equal

You have already hinted at this. The last month was marked by protests across the United States after the death of an African American George Floyd, in an incident involving the police in Minneapolis. How do you view this civil unrest?

Well, this is a time of great sadness for me, and really for all Americans. I obviously feel deep sympathy for Mr Floyd’s family for their loss, and I also recognise that this tragedy fits into a larger picture of American society. A couple weeks ago, my wife and I hosted a candlelight vigil for members of the Embassy community. That gave us a chance to remember Mr Floyd,

gle American – regardless of race, religion, ethnic group, or sexual orientation, and regardless of age or whether someone has a disability. We do not try to hide or cover our shortcomings as a nation. I have been pretty open about this on social media and in engagements with journalists. Some governments attempt to control the press, to limit the flow of information, and to hide problems. They might want to create a false, new narrative to play down an emerging virus threat, or to cover up corruption or environmental disasters. They might want to limit the ability of journalists to criticise

DIALOGUE

A return to dialogue between Belgrade and Pristina is not a partisan issue, so I would expect no change at all in terms of the U.S. position

government decisions. They might aim to limit people’s freedom of expression or prevent the free exercise of religion. But this strategy can have tragic results. The truth always comes to light, and now modern technology makes it easy to share information quickly and widely. Let me say this, too: hiding information from citizens erodes trust and undermines democracy, stability and even security. It enables corruption and abuse. In fact, had the Chinese Communist Party not hidden information about the Covid-19 outbreak when it happened, the world might be in a very different place right now. This is as true in the United States as it is here in Serbia, or anywhere else in the world. So, yes, this is a difficult time for America. Yes, it might look somewhat chaotic from afar. But democracy is not always neat and tidy. There must be debate, sometimes even loud arguments, and some displays of passion. But those are all ingredients of progress. You have to hear everyone’s perspective. You have to put yourself in the other person’s shoes. We are already seeing local governments back in the U.S. institute reforms in policing. Extremely important conversations on race and equality are now taking place throughout American society. You know, one other silver lining is that what is happening in America is prompting other nations to look at their own legacies of racism and injustice. With that in mind, let me just say that I applaud all citizens and organisations working for greater justice and equality. Those are not just dreamy ideals. Those are basic values that we all share as human beings, spelled out in the UN Charter of Human Rights. And they are goals that all governments and all societies should strive to guarantee. Some analyses of the situation in the U.S. also raise the question of whether the Presidential election contest will further divide American society in the months ahead. You already see what’s happening in public gatherings and riots. What do you anticipate will happen?

July

Interview Most of the civic activism you see today in the U.S. has actually been quite peaceful, including the recent protests about racial justice and police reform. Violent incidents have been the exception to the rule rather than the norm. And I would argue that that’s been the case during the continuing struggle for equality throughout much of the history of the United States, particularly since the start of the Civil Rights

pretty colourful electoral system. The next couple months will remind foreign audiences of that fact. The current U.S. administration has appointed two officials as special envoys for the region, who are both involved in promoting dialogue between Belgrade and Pristina. In the event of any change at the White House

can assure you that this region will continue to be important for Washington and for my team at the U.S. Embassy in Belgrade, no matter what happens in November. All of us will continue to support efforts to bring peace, prosperity, and a European future for the people of this region. According to one story making the rounds, the current U.S. administration hopes to reach some kind of agreement between Belgrade and Pristina by the time of the American presidential elections. Do you think that’s realistic?

AMBASSADOR GODFREY DURING THE VISIT OF UNIVERSITY OF BELGRADE, WITH IVANKA POPOVIĆ PH.D. CHANCELLOR Movement. Marches, protests, sit-ins, non-violent civil disobedience. Those were the hallmarks of the struggle for the rights of African Americans during the time of Martin Luther King Jr. Latinos, Native Americans, women, the LGBTQI community and the disabled have all borrowed those same tools to secure their rights. So, I condemn violence, of course, but I view the current public discourse, including the peaceful protests, as a sign that a growing number of Americans recognise the need for justice in their communities and want greater unity. Meanwhile, I expect the Presidential and Congressional campaigns to be exciting and even raucous at times, as we head toward Election Day on November 2nd. U.S. electoral campaigns have rarely been quiet affairs throughout history. They are never boring. But going back to what I said earlier, freedom of the media and freedom of expression generally allow Americans – both candidates and ordinary citizens – to share and receive information from different sides and hear perspectives about all aspects of the issues. U.S. Citizens make their views clear through party primaries and general elections, as well as votes on specific issues through referendums and other ballot initiatives at the state and local levels. We have a

July

Confronting the truth head on, through a free media and open debate, might sometimes make some people uncomfortable, but it leads to better solutions. It also lays the foundations for good government, peace and prosperity after the November elections, what would be the fates of Deputy Assistant Secretary Matthew Palmer and Ambassador Richard Grenell?

A return to dialogue between Belgrade and Pristina is not a partisan issue, so I would expect no change at all in terms of the U.S. position. Stability and prosperity for the region are objectives strongly supported by both of the United States’ major political parties. While I cannot comment on the elections, I

Why not? From my perspective, it’s entirely realistic to think that leaders would want to sign a durable agreement that would increase the prosperity of their citizens and bring stability to the region. Continued tension blocks the prospects of further growth and prosperity for the people of this region. All of us – Special Presidential Envoy Grenell, the White House, the whole U.S. State Department, and my Embassy team – hold a shared belief: building stronger economic cooperation between Serbia and Kosovo is an achievable goal that will quickly bring concrete results. It would build trust and lead to improved cooperation in other areas. Perhaps real reconciliation between Belgrade and Pristina is within our grasp. There is no reason to delay. During your recent meeting with Serbian Foreign Minister Ivica Dačić, you expressed disappointment with the latest moves by Pristina, which again threatened transports of goods from central Serbia to Kosovo. The earlier lifting of import duties on Serbian goods was preceded by strong U.S. pressure. What kind of message will Washington now send?

We were happy to see that Pristina dropped its insistence on reciprocity measures that would have seriously impacted trade and economic development on both sides. The United States wants to see all barriers to dialogue removed and all trade policies refocused on what is best for the people of this region. That approach has the greatest potential to create jobs, increase incomes and prevent further brain drains. This is our longstanding position. How do you view current relations between Serbia and Montenegro?

Serbia and Montenegro have so much in common, and they have so much to gain from cooperation and friendly relations. We believe the people and

governments of both countries understand this and can work through any challenges. We are concerned, however, by the heated rhetoric and growing tensions. Some media and politicians in Serbia appear to be fanning the flames of controversy and promoting outrage in a cynical attempt simply to sell newspapers. Religious freedom is a fundamental value, which the United States supports, and we believe this issue should be addressed through open and honest discussions. People need to ignore the noise of the tabloids and populists and instead simply listen to each other.

a free press in democracies. What is your

Are you satisfied with the progress on

assessment of the media environment in

the Morava Corridor, construction of which

Serbia today?

will be carried out by an American-Turkish

Like others, the United States is deeply concerned about the state of the media in Serbia. This country continues to receive negative assessments in this area from reputable international groups – from Reporters Without Borders, Freedom House, the

I am glad that work has started on the highway, and that it is continuing at a decent pace. I hope that other American companies will have the opportunity to participate in building more of Serbia’s transporta-

consortium?

In the lead up to the June elections in Serbia, you had contacts with political leaders of all stripes, whom you encouraged to participate in the elections. Some of them had claimed that current conditions would not allow for free and fair elections. Why were you opposed to the idea of boycotting the elections? What would you say now about the electoral process, given that a portion of the opposition and citizens of Serbia did decide to boycott the elections?

We definitely acknowledge the legitimate concerns of the opposition about the lack of access to media and other shortcomings in the electoral process. That being said, the people deserve a say in who their representatives are and, to be frank, we did not see a boycott of the elections as an effective alternative to elections in giving people a voice. We believe that a boycott actually limits the opposition’s effectiveness in advocating for change on behalf of those it seeks to represent. At any rate, our shared goal remains to make Serbia a stronger democracy. We look forward to ODIHR’s final report on the elections, but I would predict that it will find that there is still room for improvement. For one thing, the media environment did not give the various parties an equal opportunity to convey their vision for Serbia’s future. As the EU and many others have said, Serbia still has work to do with regard to its electoral system. Going forward, the U.S. Embassy and other missions in Belgrade will work with individuals and groups – including those who did and didn’t boycott the election – to promote freedom of the media, strengthen civil society, hold the government accountable to the citizens and make this a more democratic country. You talk often about the importance of

AMBASSADOR VISITING BALL PACKAGING

What is happening in America is prompting other nations to look at their own legacies of racism and injustice. With that in mind, let me just say that I applaud all citizens and organisations working for greater justice and equality. Those are not just dreamy ideals OSCE, the European Union and others. Tabloids continue to distort and dissemble, lazily running unsubstantiated, sensationalist stories created by outside entities with shadowy agendas. At the same time, diverse political voices and viewpoints unpopular with the powers that be have little or no access to most outlets. A free and independent media is the best medicine to improve the health of Serbia’s democratic future.

tion and technology infrastructure in the coming years. These networks are vital to growing Serbia’s economy, and the construction projects themselves provide important jobs. That’s a big help in fighting the brain drain problem. Has the downturn in the global economy, caused by the struggle against Covid-19, impacted interest in investing in Serbia among potential U.S. investors?

Covid-19 has unfortunately affected businesses around the world, but Serbia actually seems to be in a better economic position than many other countries, because of its prudent fiscal management and stable monetary policy in recent years. Covid-19 will eventually pass, and economies around the world will recover. When that time comes, I trust that American investors will continue to see Serbia as a welcoming environment for new investment. During the virtual 4th of July celebrations that you are hosting, I am sure we will see both the U.S. and Serbian flags flying alongside each other. How would you assess bilateral relations at present?

Excellent, and getting better every day.

July

GLOBAL DIARY

COVID-19 pandemic

“A vaccine will be the solution to end the COVID-19 pandemic. Once found, it will have to be available for all.” – EMMANUEL MACRON, PRESIDENT OF FRANCE

REVIEW OPTIONS ON US TROOP WITHDRAWAL FROM GERMANY U.S. Defence Secretary Mark Esper will soon present President Donald Trump with a range of possible plans for pulling U.S. troops out of Germany, the Pentagon said, with officials suggesting many would be moved to former Soviet-bloc countries as a warning to Russia. Two senior Pentagon officials speaking on condition of anonymity were cited by the AFP news agency as saying the plan would call for a reduction of troops to 25,000, as announced by Trump on 15 June. They said this would mean the withdrawal of 9,500 troops. The officials said that some of those 9,500 troops would return to the US, while others would be transferred to eastern European countries as a warning to Russian President Vladimir Putin, whose government’s 2014 annexation of Crimea is allegedly seen by Washington as a sign of dangerous military ambitions.

LAZARUS CHAKWERA TO BECOME MALAWI’S NEW PRESIDENT Malawi’s opposition leader Lazarus Chakwera has won Malawi’s rerun elections held on 23rd June to become the country’s new president. The Malawi Election Commission declared him the victor on 27th June with a dominant 58.57% of the vote ahead of incumbent President Peter

NORTH KOREA’S KIM JONG UN SUSPENDS MILITARY ACTION PLANS AGAINST SOUTH KOREA North Korea is putting its plans for unspecified retaliatory action against South Korea on hold, state news agency KCNA reported. The move comes after weeks of escalating tensions between Pyongyang and Seoul and stalled nuclear talks with the U.S. The decision was made during a meeting of the ruling party’s Central Military Commission, where members “took stock of the prevailing situation” before Kim decided to suspend the military’s retaliatory measures. The report did not elaborate on the reasons for the decision. The committee also discussed bolstering “the war deterrent of the country,” KCNA reported.

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Mutharika. Mutharika, who has been in power since 2014, won 38% of the vote in last year’s discredited elections in which Chakwera garnered 35%. Mutharika was even sworn into power, but evidence of electoral irregularities later led to the courts annulling the results. The scrapping of Mutharika’s 2019 victory by the courts was historic as it made Malawi just the second sub-Saharan African country to have presidential election results set aside, after Kenya in 2017.

Dialogue

“The next steps and modalities for resuming the EU-facilitated Dialogue, and the need for progress on Serbia’s reform agenda, are key elements to pave the way to the EU.” – MIROSLAV LAJČAK, EU SPECIAL REPRESENTATIVE FOR THE BELGRADE-PRISTINA DIALOGUE

SERBIA ELECTIONS 2020 As Serbia went to the polls, one thing was certain — the election was dominated by populist leader Aleksandar Vucic, who has been setting the rules of the game for years. But many of his rivals refused to play. Serbian President Aleksandar Vučić wasn’t running for a seat in the Serbian parliament, but that hardly mattered — election was still all about him. Just like every election in more than six years has been about him. As Serbia’s dominant politician, Vučić seems to be omnipresent and involved in everything, the be-all and end-all of political life in the Balkan country. His opponents focused on him when trying to whip up the ever-shrinking liberal public in Serbia into political action. At the parliamentary polls, however, many of his rivals were conspicuously absent — a large group of opposition parties decided to boycott the race.

EGYPT TO TRY RESTARTING TOURISM DURING CORONAVIRUS PANDEMIC As of 1st July, Egypt has reopened select resorts and archaeological sites to foreign tourists. But with a vaccine for the new coronavirus still far off, the country’s crippled tourism sector faces a long road. Authorities are gradually reopening Egypt’s cru-

cial tourism sector, even as the daily number of new infections within the country hovers at around 1,400, according to figures from Johns Hopkins University. Egypt has seen far fewer cases of the virus compared with countries of similar population size, such as Germany. But medical staff in urban centres have complained of an overwhelmed health care system and insufficient testing, while officials have spoken of the need to “coexist” with the virus.

SPAIN, IRELAND AND LUXEMBOURG JOIN RACE FOR EUROGROUP PRESIDENCY

DONALD TRUMP SIGNS ORDER PROTECTING MONUMENTS

Spanish Economy Minister Nadia Calviño has become the front runner in the race to succeed Mário Centeno as the next Eurogroup President. The 51-yearold economist became the first official contender for the position after the government in Madrid formally proposed her candidacy. Calviño would become the first woman to lead the Eurogroup. Irish Finance Minister Paschal Donohoe has now also thrown his hat into the ring. He is thought to have widespread support as a potential compromise candidate coming from a middle-ground country. Luxemburg’s Finance Minister Pierre Gramegna is the latest to show interest in the role. The Eurogroup’s top post is vacant after Portuguese chairman, Mario Centeno said he would not seek a second two-and-a-half-year term. The new Eurogroup chair will play a major role in designing the EU’s policies for economic recovery after the coronavirus crisis.

U.S. President Donald Trump has signed an executive order taking a hard line against people who damage statues. The executive order says the federal government will prosecute “to the fullest extent of the law” any person or group that damages or desecrates a monument, memorial or statue. Trump also threatened to withhold federal funding to states and law enforcement agencies that fail to protect monuments. Trump had authorized government officials to arrest the people involved in bringing down statues, adding that the measure could be applied retroactively. Cities across the U.S. have faced civil unrest following the police killing of unarmed African-American George Floyd.

July

Opinion Serbia After The Quarantine

The Coronavirus outbreak has changed the world and Serbia. The country we’ve entered is only two months “older” than the one we had before the pandemic, but it is different to a great extent. We are yet to confront the long-term political consequences of the fear with which many citizens are “followed” to the polls. The first consequences of these choices are already confronting us

as the quarantine just a transitory condition that we, with the first opportunity to exit it, have collectively forgotten? Or has this time shaped us enduringly? After the quarantine, have we entered a Serbia that’s more autocratic or more democratic? Are we closer to Europe or further away; do we have more solidarity or are we more self-centred, more cordial or distant? What does the time of the Coronavirus mean for the future of Serbian society? Sociologist Boris Jašović says that we cannot observe Serbia before and after the quarantine beyond the scope of broader global processes that further weaken the democratic potential of the Western world day after day. “This is first and foremost a process of desovereignisation, which implies the weakening of the state and its subordination to the

July

Bad Day After A Tough Night

Slobodan Cvejić: The pandemic represented a test of the strength of institutions for each country. We interpreted it as a demonstration of power, while other countries, with good organisation, effectively directed the behaviour of their citizens towards a quick exit from emergency measures

interests of corporate capitalism, which has serious ramifications for human rights and freedoms”, says Jašović. In Serbia the aforementioned processes, as in other dependent countries, are shown in an extremely raw form, notes our interlocutor. “Elections don’t represent a guarantee of the democracy of the system, given that they only serve to legalise the coming to power of this or that local oligarchy, which will then serve the interests of global corporatism. An authoritarian system of government was established in Serbia long before the quarantine, and is characterised by (dis)respect for the constitution, depending on the political will and interests of the ruling oligarchy, passing laws without public debate, re-voting and the complete absence of democratic dialogue, the non-existence of the rule of law etc.,” says Jašović.

For this sociologist the state of emergency, police curfew and quarantine show what disciplining citizens and suppressing their freedoms might look like in the future, through regulations and decrees linked to sanctions. “This is about authoritarianism that is moving in the direction of micrototalitarianism, but within the scope of a larger process of totalitarian transformation of the global social order. In that sense, Serbia is moving away from European values and principles, just as European bureaucracy is also moving away from them, but on the other hand it is getting closer to European bureaucracy with the speed of opening and closing accession chapters,” says Jašović. The permanent placement of orders via the media during the quarantine period: stay at home, isolate yourself, distance yourself from other people in public spaces, avoid gatherings, stand in line at the prescribed distance etc., show the kind of role that the media can play in any future attempt to discipline citizens warns Jašović. “On the other hand, citizens neither have more solidarity nor are more focused on themselves than they were before the quarantine. They are certainly more distant, but changes can also be expected there, albeit in accordance with the political will and interests of decision-makers. This is also the answer to the question of what the future of Serbian society will be like. Dystopian, with even more openness in abolishing civil rights and freedoms,” concludes our interlocutor. The pandemic hit the entire globe equally, and we thus became closer to Europe and the world, says Ivana Dimić, author and playwright. “Suddenly we all found ourselves under quarantine.” The Coronavirus appeared as invisible and deadly. It is frightening for every human being when those closest suddenly become a potentially mortal threat. This makes people more distant and more focused on their most basic self-interest: survival. “But people are different and my experience is that they react more strongly in catastrophic situations, but the same as they usually do: one who is good is even better in difficult circumstances, and one who is bad is even worse”, says Dimić, adding that she would single out fear as the most severe consequence of the pandemic. Fear is worse than any virus, because it renders

people helpless, unfree and prone to being easily manipulated she explains. “That’s why I think the most important thing is for everyone individually to fight against the fear within themselves at all times, both as a political being and at deeper levels of existence”, concludes Dimić. “With us here in Serbia the system is

Boris Jašović: The permanent placement of orders via the media during the quarantine period: stay at home, isolate yourself, distance yourself from other people in public spaces, avoid gatherings, stand in line at the prescribed distance etc., show the kind of role that the media can play in any future attempt to discipline citizens

authoritarian and I expect it to become more democratic” adds our interlocutor. “However, the people in our country were simultaneously quite supportive of one another and cordial and were not afraid during the Coronavirus outbreak”. Dimić say that for her it is almost impossible to make predictions for several reasons. “I have a stoic view of the world and am interested in the art of living in the present. Secondly, I have a tendency to generalise, but not in the political field because I’m not familiar with it and am therefore not interested. It is probably for these reasons that I notice phenomena in a different way from how they’re suggested by your questions. I don’t know, thus, what the future of Serbian society will be like. I know that Serbia is a small country and that it will have to fit in. Emil Cioran once said that great nations are subjects of history, while small nations are objects, so history is inevitably devastating for small nations. I hope this philosopher is wrong. We’ll see,” says this author and playwright Milan Podunavac, Professor of Political Theory and Political Culture, Faculty of Political Science, University of Belgrade and Humanities, UDG, believes that the Coronavirus strengthened new despotisms. He divides his thoughts on the impact of the pandemic on societies into three brackets. The first is The pandemic of fear. “The Coronavirus pandemic that we are still surviving is accompanied by a pandemic of fear”, he explains. A global wave of fear has once again covered the entire world. We live in a “new normality” (Baumann) shaped by “floating fear”. It turns out that fear is nothing more than a common name for a space of insecurity and a field of uncertainty, accompanied by our inability to decipher the sources of danger to which we are exposed. Both citizens and communities are framed by fear. “Our existential insecurity plays an important role in the history of human civilisation. We fear gods, disease, death, loss, power, strangers, the unknown. There are powerful reasons why battles with fear cannot be won, although it is possible, under special conditions, to avoid the institutionalised (especially political) exploitation of destructive and irrational fears”, says professor Podunavac. All human beings and political communi-

July

Opinion Serbia After The Quarantine ties “organise fear” and arm themselves with instruments and tools to suppress and overcome fear, not only with fences around their houses and city walls, but also similarly with laws. “Institutions, symbols, myths, religion, culture. The history of civilisation is nothing but the “school of courage” as put by Ferrero, says our interlocutor. The second important aspect is related to political effects of the pandemic of fear. “The pandemic of fear fundamentally changes the notion of politics in modern times”, says Podunavac. There are three tendencies that are particularly admonishing he explains: First, distrust of democracy has grown. Democracy is fragile. Democracy seeks special conditions and civic virtues. They are difficult to generate and even more difficult to maintain. Hence the main problem is not how Montesquieu teaches us how much virtue a republic (democracy) needs, but how to avoid a situation where the republic does not collapse into open despotism. “That is precisely what’s happening in Serbia”, he underlines. Second is the normalisation of “new despotisms”. This new plague has covered modern political societies, the plague of “new despotisms”, regimes that mock representative, responsible and supervised democracies. The Coronavirus pandemic further legitimised and strengthened the demonstrative effect of the “oligarchic cartel of autocrats” (Xi Ji Ping, Putin, Erdogan, Lukashenko, Orban). “Serbia and Serbian rulers wholeheartedly and openly recommended this autocratic cartel for themselves”, says our interlocutor. According to him, Serbia has not had a worse government in modern history. Serbia, he explains, has had the misfortune of giving birth to the two most regressive regimes in modern Europe in the last fifty years (Milošević, Vučić). It is the only post-communist country in which political restoration is underway. On the backs of an impoverished, politically subjectivised and degraded people grew tyrannical and autocratic rule. The ochlocratic government dressed the political society of Serbia in an anti-democratic and anti-European suit. Third is hubris, the insatiable urge of those in power for political might. Pericles was carried away by the plague. The hubris of the political leaders who succeeded him, coupled with irrational and destructive fear

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Ivana Dimić: my experience is that people react more strongly in catastrophic situations, but the same as they usually do: one who is good is even better in difficult circumstances, and one who is bad is even worse that is permanently produced and renewed, destroyed the moral and physical foundations of the Athenian state. Political life in Serbia shows exactly these qualities. The insatiable desire for power, strengthened by an existential fear brought to us by the pandemic, displays self-destructive properties. Political order is growing that increasingly collapses into a state of lawlessness, anarchy and insecurity. We are seeing the destruction of social, political and symbolic “security tools” with which society

fights against the destructive effects of fear and disorder, professor Podunavac adds. The space of freedom and human rights has been replaced by the imposed form of a police state and “naked life” (Agamben). At work is a special and dangerous symbiosis of the fear of the rulers and the fear of the citizens. The civil theology of society has been destroyed, the unifying principles that legitimise power structures and strengthen the connective tissue of the political body of society have been lost. The pandemic of fear has additionally enabled the holders of power to turn such a veil of quasi-legitimate rule into open usurpation. It is being forgotten that the government that usurps the freedom and power of citizens is a “house on the sand” (Constant). However, we should not forget the importance of civic courage, says our interlocutor. We learn from the Stoics that fear and courage are the strongest human urges. Courage is the oldest and most powerful public virtue. Civic courage is the first virtue of democratic societies. Political and democratic institutions are both equally resources and goals for liberation from fear. Among the basic freedoms that people strive for to make their lives complete, freedom from fear is both a means and an end. Nations and communities

that want to build orders in which liberal and democratic institutions are firmly established must learn to free their minds from apathy and fear. A society chained by fear is an unfree society. “Courage is the second face of order, and hence a pillar of dignity, equally of communities and citizens”, says our interlocutor. “The culture of protest that’s formed by new actors of civil society and autonomous civil and academic groups are mainstays of the “culture of hope” and the source of shaping an alternative hegemonic project that returns Serbia to its original values of democracy and the political idea of Europe.” Indeed, during the time of the Covid-19 pandemic, almost all countries in the world were confronted by the challenge of needing to abruptly change the regular way of the society and economy’s functioning on a daily basis, says Slobodan Cvejić, professor of sociology at the University of Belgrade and member of the Council of the Regulatory Body for Electronic Media (REM). “But not everyone defined their response to this challenge in the same way”, our interlocutor underlines. News arrived from some telling of the significant usurpation of civil liberties and concentration of power, in parallel with high numbers of infected and deceased, while other

Milan Podunavac: democracy seeks special conditions and civic virtues, and they are specific under conditions of fear. But the Stoics teach us that, alongside fear, courage is also among the strongest human impulses and public virtues

countries effectively stabilised the first blow with good organisation and the well directed behaviour of their citizens towards a quick exit from emergency measures. The pandemic, thus, concludes professor Cvijić, represented a test of the strength of institutions for each country. “Here it is important to emphasise that the term strong institutions does not mean institutions that are ready to use force to achieve a result, because the alarming nature of the crisis situ-

ation easily called for just such a reaction. In this situation the strong institutions are those that enable an efficient search for solutions, easy coordination, the optimisation of resources, transparent work and quick decision-making”, our interlocutor notes. “In this sense, the Covid-19 pandemic emphasised all the controversies and contradictions of social development in Serbia”, says Cvijić. “In a country torn between efforts to strengthen its own international position in an era of intense change in global power relations, on the one hand, and deep internal political divisions and economic inequalities, on the other, it has not been easy to mobilise resources, define appropriate political action and encourage citizens to act responsibly during the quarantine”. He emphasises an important dimension. “The authorities in Serbia opted for a tougher, more authoritarian approach. They declared a state of emergency, and not an emergency situation, a curfew was introduced very early on, and the army was deployed on the streets. Some moves can even be characterised as unnecessary demonstrations of power, such as the suspension of the work of the parliament and the declaration of a state of emergency by the triumvirate (president, prime minister and national assembly speaker). Because of this, many media outlets and international organisations placed Serbia on the list of countries that significantly restricted democracy during the time of the pandemic”, says Cvijić. “The way in which the state of emergency was managed, and the way in which it was presented and used in the media, further reduced Serbian citizens’ already lagging trust in institutions. This weakness also impacts on the behaviour of citizens. Since the fight against the pandemic was based more on coercion than on the responsibility and solidarity of citizens, it is not surprising that with the easing of measures introduced during the state of emergency most citizens don’t show enough responsibility and the solidarity that’s much needed to overcome the pandemic”. He concludes: this is the result with which all of us together in Serbia are entering the next phase in the development of the pandemic, in a period in which its full effect on population movements, the economy, employment and the economic position of citizens can be expected.

July

Focus

What The Elections Brought Us?

Lonesome

Victory

The fact that the Serbian National Assembly, the countryâ&#x20AC;&#x2122;s parliament, is almost a one-party institution, and that such situations are also reflected at the local level, creates a specific atmosphere that makes the issues of freedom of public information, the rule of law and democratic political dialogue even more relevant

he ruling Serbian Progressive Party (SNS) won two million votes and a convincing majority at all levels of government, in the parliamentary, provincial and local elections held on 21st June, the organising of which was not

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met by major objections from international organisations. Nonetheless, many of the figures in this victory are the subject of lively discussion, and according to experts theyâ&#x20AC;&#x2122;ve further brought into question the possibility of political dialogue in society.

H.E. ANDREA ORIZIO HEAD OF THE OSCE MISSION TO SERBIA

TIME TO BRIDGE POLITICAL DIVISIONS IT SEEMS THAT PARLIAMENTARY, PROVINCIAL AND LOCAL ELECTIONS IN SERBIA WERE ADMINISTERED EFFICIENTLY, DESPITE THE CHALLENGING CIRCUMSTANCES CREATED BY THE COVID-19 PANDEMIC. YET THE VOTER CHOICE WAS LIMITED BY THE RULING PARTY’S OVERWHELMING ADVANTAGE AND THE PROMOTION OF GOVERNMENT POLICIES BY MOST MAJOR MEDIA OUTLETS.

situation means that the need for dialogue to bridge political divisions and ensure pluralism is all the more pressing. As we continue to adapt to Serbia’s evolving needs – including through concrete activities and projects to mitigate the impact of Covid-19, always within our mandate – we remain focused on the work we are carrying out in our crucial programmatic areas. I think, for example, of the implementation of the Media Strategy’s Action plan and of the protection of the safety of journalists. We stand ready to continue assisting Serbia in building a pluralistic democracy, which is a key OSCE principle and is essential to the genuine representation of diverse interests in every society. The OSCE Mission looks forward to continuing its partnership with all stakeholders to further advance domestic ownership of the reform agenda for the benefit of Serbian citizens. We provide assistance and expertise in key reform areas, modernisation and democratic development: strengthening democratic institutions, fostering the rule of law and security sector reform, as well as supporting professional journalism and free media. We also underline the importance for the Serbian authorities to continue cooperating with OSCE/ODIHR on the implementation of election recommendations.

BOBAN STOJANOVIĆ The OSCE – through its Office for Democratic Institutions and Human Rights, ODIHR – is the only International Organization that was able to engage in election observation. Because of the special circumstances caused by the pandemic, the mission that was deployed designated as Special Election Assessment Mission (SEAM). While the SEAM’s report will be available in circa six weeks, WE STAND READY preliminary findings and conclusions TO CONTINUE were promptly published shortly after ASSISTING SERBIA election day. IN BUILDING A These findings indicate that parliamenPLURALISTIC tary, provincial and local elections in DEMOCRACY, Serbia were administered efficiently, WHICH IS A KEY despite the challenging circumstances OSCE PRINCIPLE created by the COVID-19 pandemic. The AND IS ESSENTIAL SEAM also noted that “contestants in the TO THE GENUINE elections were able to campaign while REPRESENTATION voter choice was limited by the ruling OF DIVERSE INparty’s overwhelming advantage and TERESTS IN EVERY the promotion of government policies by most major media outlets”. This SOCIETY

POLITICAL SCIENTIST AND PHD. STUDENT AT THE UNIVERSITY OF BELGRADE FACULTY OF POLITICAL SCIENCE

VICTORS HAVE NO REASON FOR SATISFACTION IT SEEMS THAT ALMOST ALL THE PARTIES THAT ENTERED PARLIAMENT, REGARDLESS OF THE NUMBER OF SEATS THEY WON, HAVE REASON TO BELIEVE THAT THEY LOST A LOT. SNS WON ONE-PARTY PARLIAMENT, SPS [SOCIALISTS] LOST PART OF THEIR VOTES, AND ALEKSANDAR ŠAPIĆ (PERHAPS) THE MUNICIPALITY HE CARED ABOUT THE MOST July

Focus

What The Elections Brought Us?

First and foremost, it’s important to consider the turnout in these elections. Even now, a few days after the elections, we have no official information on how many people went to the polls, and the CRTA observation mission announced that all elections held had the most irregularities since they began observing them, and that they were predominantly aimed at raising turnout (drawing people out to vote). It should not be overlooked that these elections had the lowest turnout in Serbian parliamentarianism and that, compared to the previous elections, about 486,000 fewer people voted, while there were over 120,000 invalid ballots. The election results themselves shouldn’t surprise anyone. We might have expected slightly higher voter numbers for PSG (social liberals) and SRS (Radicals), but no public opinion poll indicated that one or the other had certainly crossed the three per cent threshold, and particularly since SNS managed to “draw out” over two million voters to the elections, meaning that the threshold reached almost 100,000 votes. Even despite this result, SNS cannot be satisfied with the final results, because the boycott resulted in the current administration winning 234 of 250 seats, and SNS itself taking close to 4/5 seats despite the institutional changes THIS KIND OF (lowering the threshold and easing IMAGE OF THE candidacies in the elections), with the PARLIAMENT AND aim of throwing a few more options into LOCAL GOVERNto parliament. The government is the only one, along with the minority parties, MENT WILL ONLY to win seats according to the five per FURTHER POSIcent threshold that’s been in force for 28 TION SERBIA AS years, since the introduction of the proAN UNDEMOportional electoral system. In that sense, CRATIC REGIME SNS cannot be satisfied because it won IN WHICH PARTY almost a one-party parliament and virtuAND ELECTION ally no opposition exists in it, which they COMPETITION IS tried in multiple ways to avoid. NON-EXISTENT SPS lost about 70,000 votes, so they can’t be satisfied either. Likewise, although he entered the parliament, it seems that Aleksandar Šapić will lose the municipality of New Belgrade, despite the largest number of mandates, and thus lose executive power, at least in this city municipality, which I believe was actually his primary goal. The opposition parties that went to the polls was completely annihilated, with the possible exception of POKS (conservative royalists), which only slightly fell below the threshold. Milan Stamatović preserved the municipality of Čajetina and it seems he’ll pass the 1% limit, which means he won’t have to return campaign funds from the budget, and can almost be the only one to declare himself a winner in these elections. As things stand, the opposition-led Šabac has been lost, as has the municipality of Paraćin - which appeared to be one of the key missions of the SNS machinery. There were only a few municipalities where SNS didn’t win an absolute majority. 24

July

DUŠKO RADOSAVLJEVIĆ PH.D. POLITICAL SCIENTIST

NO ONE CAN BELIEVE THEY REPRESENT ALL CITIZENS

AFTER SUCH ELECTION RESULTS, CERTAIN NEGOTIATIONS MUST TAKE PLACE, BETWEEN THE RULING POLITICAL PARTIES, OPPOSITION PARTIES, REPRESENTATIVES OF CIVIL SOCIETY AND EXPERTS, WITH THE AIM OF FORMING A KIND OF CONSENSUS ON THE FUTURE OF THE STATE AND SOCIETY.

The results of the elections held at the national level, the provincial level in Vojvodina and the local level, correspond with the predictions and expectations of serious researchers and those familiar with the political situation in the country. The brutal campaign of the regime parties, the boycott of the more serious section of the opposition, as well IN NO WAY as the ritual political suicides of political SHOULD THE WINparties, most of them not embedded in NER OF THE ELECthe electorate, who were fishing on the TIONS CONSIDER reduced electoral threshold and being let off by media with national coverage, THAT HE HAS REproved unable to achieve a different CEIVED THE FULL outcome. In our opinion, two concluAND LEGITIMATE sions follow from this: in no way should RIGHT TO DECIDE the winner of the elections feel too proud THE FATE OF ALL and consider that he has received the CITIZENS, WITHfull and legitimate right to decide the OUT LISTENING fate of all citizens, without also listenTO THOSE WHO ing to those who did not go to the polls, DIDN’T VOTE. because that would be a big mistake. On the other hand, the representatives of the boycott opposition also shouldn’t think that all those citizens who chose not to go

to the polls are their voters and that they represent them. This means that some kind of negotiation must follow, between the ruling political parties, opposition parties, civil society representatives and experts, perhaps even a round table, aimed at building a kind of consensus on the future of the state and society. Displaying muscles on the one hand, or stubborn rejection on the other hand, do not lead to the resolving of the huge crisis that has been shaking Serbian society for a long period.

ZORAN LUTOVAC PRESIDENT OF THE DEMOCRATIC PARTY

THE START OF A NEW RACE

THE JOINT BOYCOTT WAS THE FIRST STEP IN ACHIEVING JOINT ACTION THAT LEADS TO THE POLITICAL SUCCESS REQUIRED FOR THE RADICAL CHANGES NEEDED IN THE OPPOSITION. WE AT THE DEMOCRATIC PARTY INITIATED SUCH CHANGES

This was another irregular election. There is no winner in such elections. A large number of votes went to Aleksandar Vučić and his SNS, but this can’t essentially be called a triumph, not only because of unequal conditions, but also because the violent usurping of politics has led to the fact that the parliament will be left without any opposition representatives. A parliament without opposition has no legitimacy. The story about the percentage of those who went to the polls in this irregular election is completely meaningless, because the number of those who turned out cannot compensate for the fact that there is no freedom of the media, that pressure to vote was exerted, blackmail, threats; that no rule of law exists that would correct irregularities. Among other things, if the turnout was the only relevant measure of the democracy of the order,

then Belarus or North Korea would be examples of democratic orders, and they certainly are not. In essence, an autocrat led a presidential campaign in local parliamentary elections and once again demonstrated his force, whilst disregarding democratic rules and customs, the rule of law, and even the health of Serbian citizens. WE WANT TO REThe citizens used the boycott to expose TURN THE PARTY autocratic rule, and the opposition that TO THE CITIZENS. boycotted the fraudulent elections passed the test of credibility and qualiTHAT’S THE ONLY fied to be the leader of essential changWAY FOR US TO es. For such changes it is important to ACT TOGETHER TO reach a synergy between dissatisfied CHANGE SERBIA citizens and the opposition. The joint boycott was, however, the first step in achieving joint action that leads to the political success required for the radical changes needed in the opposition. We at the Democratic Party initiated such changes. Apart from changes of an organisational and technical nature, it is necessary to destroy the internal monopolies within the party and to open the door wide to a large number of high-quality people who are ready to engage politically. That’s why we formed the Civic Democratic Club, which brings together independent intellectuals with whom we discuss important political issues. This is an important step, but isn’t sufficient in itself. We must reach workers, farmers, members of the middle class who used to be our stronghold, coming to all strata of society.

Feature

By Project Syndicate/Joseph E. Stiglitz, Hamid Rashid

Which Economic Stimulus Works? During the initial shock from COVID-19, it was understandable that governments and central banks would respond with massive injections of liquidity. But now policymakers need to take a step back and consider which forms of stimulus are really needed, and which risk doing more harm than good

overnments around the world are responding forcefully to the COVID-19 crisis with a combined fiscal and monetary response that has already reached 10% of global GDP. Yet according to the latest global assessment from the United Nations Department of Economic and Social Affairs, these stimulus measures may not boost consumption and investment by as much as policymakers are hoping. The problem is that a significant portion of the money is being funneled directly into capital buffers, leading to an increase in precautionary balances. The situation is akin to the “liquidity trap” that so worried John Maynard Keynes during the Great Depression. Today’s stimulus measures have understandably been rolled out in haste – almost in panic – to contain the economic fallout from the pandemic. And while this fire-hose approach was neither targeted nor precise, many commentators would argue that it was the only option at the time. Without a massive injection of emergency liquidity, there probably would have been widespread bankruptcies, losses of organizational capital, and an even steeper path to recovery. But it is now clear that the pandemic will last much longer than a few weeks, as was initially assumed when these emergency measures were enacted. That means these programs all need to be assessed more carefully, with an eye to the long term. During periods of deep uncertainty, precautionary savings typically rise as households and businesses hold on to cash for fear of what lies ahead. The current crisis is no exception. Much of the money that households and businesses receive in the form of stimulus checks will probably sit idle in their bank accounts, owing to anxieties about the future and a broader reduction in spending opportunities. At the same time, banks will likely have to sit on the excess liquidity, for lack of credit-worthy borrowers willing to take out fresh loans.

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Not surprisingly, excess reserves held in US depository institutions nearly doubled between February and April, from $1.5 trillion to $2.9 trillion. For comparison, excess reserves held in banks during the Great Recession reached just $1 trillion. This massive increase in bank reserves suggests that the stimulus policies implemented so far have had a low multiplier effect. Clearly, bank credit alone is not going to lead us out of the current economic stalemate. Making matters worse, today’s excess liquidity may carry a high social cost. Beyond the usual fears about debt and inflation, there is also good reason to worry that the excess cash in banks will be funneled toward financial speculation. Stock markets are already gyrating wildly on a daily basis, and this volatility could in turn perpetuate the climate of increased uncertainty, leading to still more precautionary behavior, and discouraging both consumption and the investment needed to drive the recovery. In this case, we will be facing a liquidity trap and a liquidity conundrum: massive increases in the supply of money and only limited uses for it by

households and businesses. Well-designed stimulus measures could help once COVID-19 has been brought under control. But as long as the pandemic is still raging, there can be no return to normalcy. The key for now, then, is to reduce risk and increase incentives to spend. As long as firms are worried that the economy will remain weak six months or a year from now, they will postpone investment, thereby delaying the recovery. Only the state can break this vicious circle. Governments must take it upon themselves to insure against today’s risks, by offering compensation for firms in the event that the economy does not recover by a certain point in time. There is already a model for doing this: “ArrowDebreu securities” (so named for the Nobel laureate economists Kenneth Arrow and Gérard Debreu) would become payable under certain predetermined conditions. For example, the government could guarantee that if a household purchased a car today, and the epidemic curve remained at a certain point six months from now, its monthly car payments would be suspended. Similarly, income-contingent loans and mortgages could be used to encourage the purchase of a wide range of consumer durables, including housing. Similar provisions could apply to real investments made by firms. Governments also should consider issuing spending vouchers to stimulate household consumption. This is already happening in China, where local governments across 50 cities are issuing digital coupons that can be used to buy various goods and services within a certain timeframe. The expiration date makes them potent stimulants of consumption and aggregate demand in the short term – when it is needed most. With the pandemic likely to last much longer than was originally assumed, still more stimulus will be necessary. Although the United States, for example, has already spent $3 trillion on various forms of assistance, without more – and, one hopes, better-designed – measures, that money will have merely prolonged the lives of many enterprises by a few months, rather than actually saving them. One approach that has been working in several countries is to provide assistance to firms on the condition that they retain their workers, supporting wage bills and other costs in proportion to an enterprise’s decrease in revenue. In the US, Representative Pramila Jayapal, a congresswoman from Washington State, has proposed legislation along these lines, as have several senators. Poorly designed stimulus programs are not just ineffective, but potentially dangerous. Bad policies can contribute to inequality, sow instability, and undermine political support for government precisely when it is needed to prevent the economy from falling into a prolonged recession. Fortunately, there are alternatives. But whether governments will take them up remains to be seen.

S ER B IAN E C O N O MY C H A L L E N G E S A N D O PP O R T U NI T I E S

To Regular Flow

Radoš Gazdić, Director of he Development Agency of Serbia (RAS) ● Violeta Jovanović, NALED Executive Director ● Stephen Ndegwa, World Bank Country Manager for Serbia ● Jelena Knežević, Certified Auditor, Managing Director, LeitnerLeitner Srbija ● Dejan Vukotić, CEO of AOFI – Serbian Export Credit and Insurance Agency ● Mira Petrović, Pošta Srbije CEO ● Jelena Galić, AIK Bank CEO ● Nihat Biševac, Mayor of Novi Pazar ● Dragana Stanojević, Chief of Party at USAID’s Cooperation for Growth project

WITH THE FIRST PACKAGE OF ASSISTANCE TO THE ECONOMY, THE SERBIAN GOVERNMENT FULFILLED ITS TASK OF PRESERVING MOST ECONOMIC SECTORS AND JOBS. FUTURE OUTCOMES DEPEND TO A LARGE EXTENT ON THE GLOBAL DEVELOPMENT OF THE SITUATION, BUT ALSO ON THE READINESS OF THE NEW CABINET TO PERSEVERE WITH REFORM PRINCIPLES AND ITS DIALOGUE WITH THE ECONOMY

CONTENTS

To Regular Flow

TAKING ON NEW CHALLENGES WITH A NEW GOVERNMENT

VITALITY IN CONFRONTING CHALLENGES

PANDEMIC BRINGS DIGITALISATION TO THE FORE

VIOLETA JOVANOVIĆ, NALED EXECUTIVE DIRECTOR

COMMENT

THINKING AHEAD & WORKING TOGETHER INNOVATIVELY

ENOUGH ENERGY, CONTINUED INVESTMENT

JELENA KNEŽEVIĆ, CERTIFIED AUDITOR, MANAGING DIRECTOR, LEITNER LEITNER SRBIJA

RADOŠ GAZDIĆ, DIRECTOR OF HE DEVELOPMENT AGENCY OF SERBIA (RAS)

READY FOR A FRESH RESTART

STEPHEN NDEGWA, WORLD BANK COUNTRY MANAGER FOR SERBIA

EPS - ALWAYS WITH SERBIA’S CITIZENS AND ECONOMY

EXPORTS DRIVE THE ENTIRE ECONOMY

DEJAN VUKOTIĆ, CEO OF AOFI – SERBIAN EXPORT CREDIT AND INSURANCE AGENCY

CITIZENS AND THE STATE COUNT ON US

MIRA PETROVIĆ, POŠTA SRBIJE CEO

NEW MARKETS ARE OUR AIM

24 26

LIFE HAS RETURNED TO NOVI PAZAR

JELENA GALIĆ, AIK BANK CEO

NIHAT BIŠEVAC, MAYOR OF NOVI PAZAR

OVERCOMING THE CRISIS TOGETHER

CCIS AND USAID OVERVIEW OF THE STATE OF THE ECONOMY

FORGING A NEW FUTURE

SERBIA’S NEW GROWTH AGENDA

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COMMENT

Taking On New Challenges With A New Government With the first package of assistance to the economy, the Serbian Government fulfilled its task of preserving most economic sectors and jobs. Future outcomes depend to a large extent on the global development of the situation, but also on the readiness of the new cabinet to persevere with reform principles and its dialogue with the economy

espite being expected, the results of the parliamentary elections of 21st June confirmed that Serbia expects a government of continuity. This is very important in an economic sense, because it is expected that the new cabinet will also decide on the policy of continuing fiscal stabilisation and, finally, the continuation of reforms that slowed down in the previous period. These policies will undoubtedly be under the strong influence of the consequences of Covid-19. However, judging by the views of international financial institutions, domestic experts and the business community, they are necessary for Serbia to return to the path of accelerated growth following the expected hit caused by the quarantine. At this juncture there are still no economic indicators that could more clearly outline the consequences the quarantine had on the Serbian economy. Specifically, in order to provide an overview of the situation, alongside data for the months of quarantine, it will be even more important to check data from May, and even more so June, when most companies began returning to normal operations. What is encouraging is certainly the fact that the implementation of some foreign investments that had already been agreed has now continued. The further development of the situation depends largely on the currently very unfavourable development of the epidemiological situation around the world, which prevents a quick return to the normal level of economic activity. Serbian companies, according to numer-

ous surveys that have been released in the meantime or are underway, have replaced the pessimism of April with relative optimism, and a belief that they could return to normal operations by the end of this year, and could compensate for losses incurred during the quarantine within two years. This optimism is based on the extensive and timely distributed package of assistance from the Government of Serbia to the economy, as well as the fact that businesspeople in Serbia are accustomed to great economic turbulence and raw survival, as a definition of success.

conditions of full return to normality. This relates primarily to the tourism industry and the automotive sector, which has perhaps been hardest hit by the virtual collapse of this industry at the European and global levels. Even if this second aid package were administered quickly, it is quite clear that countries like Serbia have a small fiscal capacity to intervene in the domestic market, because with more borrowing they would exceed the level of borrowing considered as being risk-free. It is due to these reasons, but also due to the fact that countries with small internal markets

The election results indicate that a new government could be formed very quickly, which is very important, as the hardest hit sectors of the economy require a second targeted aid package Data on GDP movements, production levels, exports and the number of jobs will undoubtedly change in the coming months. They will depend to a large extent on economic trends at the global level, and primarily in Europe, because the Serbian economy is connected to the European market and dependent on its European partners, even more than that may seem. The aforementioned election results indicate that a new government could be formed very quickly, which is also important, because after the first aid package there is, for now, no second targeted aid package directed towards those sectors that have been hardest hit and which couldnâ&#x20AC;&#x2122;t recover quickly even under the

cannot rely on internal forces to compensate for external disturbances, that the fate of the Serbian economy will depend to the greatest extent on the epidemic and the economic situation in Europe and globally. In such a narrow but still significant space for action, a need arises for additionally close cooperation between the business community and the Government of Serbia on improving the business climate, accelerating digitalisation and the reform labour legislation, which would, on the one side, accommodate the challenges of organising work from home and, on the other, extended periods of engaging workers with reduced working hours. â&#x2013;

July

INTERVIEW

RADOŠ GAZDIĆ, DIRECTOR OF HE DEVELOPMENT AGENCY OF SERBIA (RAS)

Vitality In Confronting Challenges

The experiences of the Covid-19 pandemic could prompt major companies to opt for geographically closer suppliers and logistically simpler processes in the future. This is an opportunity for Serbia to attract new foreign investors, but also for domestic companies to become parts of large, global supply chains. Under the circumstances of the pandemic, there was almost no delay in constructing capacities for contracted investments, which reached record levels in 2019

evelopments on the economic front have undergone major shifts and changes at the global level during the Covid-19 pandemic. That uncertain period is a kind of challenge even now, and will probably remain so in the coming months for all companies, whether they are large corporations or small companies and entrepreneurs, in Serbia or any other country of the world. “As for Serbia specfically and the operations of companies here, a distinction could primarily be made between two types of companies, because the challenges or effects of the ‘Covid-19 situation’ differ depending on whether we are talking about small and medium-sized enterprises and entrepreneurs or

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multinationals and large companies operating in Serbia,” says Radoš Gazdić, director of the Development Agency of Serbia (RAS). When it comes to the SME sector, RAS is in constant communication with enterprises, but in a survey conducted with representatives of this sector has also seen that some of the challenges include maintaining the level of operations that they had prior to the crisis, says our interlocutor. Some of them had to temporarily halt their work and production, and they also had fears about how they would maintain liquidity. However, they agree that the measures taken by the government proved to be an effective intervention without which it would not have been possible to return

to regular business flows. The period ahead will certainly be challenging for this type of company, given that operations are still experiencing a slowdown and, as such, companies remain wary of new financial investments and exposure to risks. “Additional measures that the state plans to take as a form of support to additional employment will certainly contribute to increased operational security,” says Gazdić. Large companies and multinational corporations had a situation globally, and also here, which saw the interruption or aggravated functioning of supply chains. And that will probably influence the future reorientation of these companies towards suppliers that are geographically closer and towards pro-

cesses that are logistically simpler. “In such potential changes, we hope that companies from Serbia will join the supply chains of major world players – that they will take advantage of the opportunity that has imposed itself as a positive in this period,” says our interlocutor. Speaking in general terms, most investment projects in Serbia didn’t experience major standstills during the “corona period”, whether that relates to building work on the construction of factories that didn’t stop at all, or existing production capacities that experienced minimal stoppages to production, while some of them commendably redirected production during those moments to protective masks and essential sanitary materials. “When the state of emergency was lifted, and in some cases even directly before that, most factories returned to normal in terms of production. Leading in this were manufacturers from the processing industry, the automobile industry and, of course, the food industry, which did not experience standstills but rather worked to greater capacities. I also believe there won’t be a shortage of new investment projects, that their number will not lag behind the number we had in the previous period,” says the RAS director. According to the reports of the Financial Times’ specialised FDI Intelligence service, Serbia has been at the top of the world over the last few years in terms of the number of

• Which of the Government’s measures from last year and this one would you single out in terms of advancing the business environment and the country’s attractiveness for investment? - There are many measures, especially when it comes to amendments to existing legal norms that were made in the previous period in order to improve business operations in Serbia, such as amendments to the Labour Law, the Law on Planning and Construction and the Law on Investment, which also relate

Last year we had a total of 3,825 billion euros of foreign direct investment, which is the largest inflow of FDI in our country to date foreign direct investments, based on the size of its economy. According to the statistics of Eurostat, with a GDP growth rate of five per cent in the first quarter of this year, Serbia took first place among 38 European economies. “We are proud of these statistics, because they say that we’ve attracted a larger volume of greenfield investments than can be expected from an economy and a country of this size,” says Gazdić. And this trend continued in 2019. “We had a total of 3,825 billion euros of foreign direct investment, which is the largest inflow of FDI in our country to date,” says Gazdić.

directly and indirectly to the creation of an optimal environment for investors. In parallel with the increase in minimum earnings, the Government increased the non-taxable part of salaries and reduced contributions to prevent employers’ costs from increasing significantly, which is also significant for future investors. A set of laws and tax breaks were adopted at the end of last year that are envisaged for the creation of an even better business environment in our country. Also of great importance are the measures taken by the Government of Serbia relating to

the mitigating of the negative consequences of the Covid-19 pandemic. In a very short time frame, the government adopted three regulations with which it brought precision to the legal framework for the implementation of state aid measures from an economic package worth 608.3 billion dinars, or 5.1 billion euros, and then also very quickly began implementing those same measures. This segment of the government’s proactive moves is very important for maintaining liquidity and sustainable business operations, primarily among domestic companies, especially those in the sector of small and medium-sized enterprises and entrepreneurs, which have been the hardest hit by this crisis period. The application of measures, such as the moratorium on loans, deferrals for payments of taxes and contributions, direct payments, deferrals of corporate income taxes and loans for liquidity, have been accepted very well by domestic companies and are extremely important for maintaining the stability of the domestic economy. • These measures are particularly important from the perspective of preserving jobs and creating new ones. Considering RAS’s work to date, could the number of jobs created to date by contracted investments be estimated? - Only investment projects launched since the founding of RAS in 2016 – and we are talking about slightly more than 100 investment projects – should directly create over 40,000 jobs, while indirectly, according to World Bank estimates, these projects have enabled the creation of four to five times as many jobs, if we take into account construction works, logistics jobs, suppliers and other segments involved in, and related to, investment projects. Likewise, upon realisation, the value of investments in these projects will reach in excess of 2.3 billion euros. I say all this in order for us to form a clear picture of what the Government of the Republic of Serbia has succeeded in doing in a very short period of time, but also us - as the Development Agency of Serbia - in terms of attracting FDI. And the key to our success, compared to neighbouring states and the countries of the region, is primarily in the unequivocal and everyday commitment of the Government to creating a positive business environment and

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attracting direct investment through the reform of legislation and the regulating of business. This is a precondition that says to investors that we are an orderly, predictable and safe environment for doing business. • What kind of approach does RAS take in attracting investments that enable the transfer of technology? - We recognise the significance of investments that enable transfers of technology

years we will have new generations who are sufficiently skilled and trained for that which is needed by investors and the market. Supporting this is the fact that it is becoming increasingly popular to study some of the engineering sciences in our country, as well as the fact that a large number of our young people attend technical high schools. All this is a consequence of our de facto industrial tradition. We already have companies that cooperate with schools in terms of dual edu-

equal opportunities, rights and obligations for both domestic and foreign investors when it comes to applying for incentives. It is true that domestic companies are often lagging behind in percentage terms compared to foreign investors when it comes to investments and subsidies, which is a consequence of their weaker investment power, but everyone has the opportunity to receive incentives under the same conditions. The advantage of RAS is in the fact that we devote equal attention to supporting and developing the domestic economy through programmes and activities intended for the SME sector. By strengthening the capacities of domestic companies, through the improving of their operations and potential, on the one hand, and attracting direct investments, on the other, we strive to create a sustainable and successful system in which investors, both domestic and foreign, can rely on domestic suppliers and incorporate them into their flows, especially those that are orientated towards exports of the products and services of companies from Serbia. • To what extent is RAS equipped to lobby for Serbia in competition with the development agencies of other countries, in a professional and financial sense? - I consider that, as an Agency, we are suf-

and strive to attract precisely the kinds of companies whose core business is based on sophisticated technology. Some such companies are already present in our country, such as Brose, MTU and ZF. We also encourage the transfer of the latest technologies because we have very good foundations for implementing such projects - and those are the professional and educated people that are essential for work in technologically significant companies. Our educational institutions train high-quality engineers, technicians and researchers, and institutes participate in this with their many years of experience in the domain of scientific research. • Does Serbia have a suitable workforce that’s aligned with the needs of foreign investors? - I don’t think we have any fears about having a suitable workforce, and that in the coming

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Our people at RAS have over 15 years of work on foreign investment projects behind them and are extremely well acquainted with the way investors think cation – one successful example of that cooperation is the Secondary Technical School in Požega, which could, according to government announcements, become a regional training centre for CNC machines. • Which measures are available to RAS for encouraging domestic investment that remains below the appropriate level? - The regulations of the Republic of Serbia define, clearly and unambiguously, that all incentive measures apply equally to both domestic and foreign companies. According to the existing Law on Investments, there are

ficiently ready in every sense to be serious competition to countries and development agencies in other countries, and testifying to that are the results and successes of the last few years. The fact that we achieve much better results than any other country in the region in terms of direct investment, the fact that we have been declared the best investment destination several times, and the fact that we have the most investment in the Western Balkans (€3.8 billion in 2019), says enough about whether we are equipped and whether we are “beating” the competition in other countries. ■

July

INTERVIEW

VIOLETA JOVANOVIĆ, NALED EXECUTIVE DIRECTOR

Pandemic Brings Digitalisation To The Fore In the first wave of the crisis, it is certain that the measures of the Government of Serbia were crucial in preventing the collapse of the private sector. These measures were unexpectedly generous and easy to implement. At the same time, doing business during Covid-19 showed us how important it is to automate procedures and transition to electronic systems, which we will continue to support in the future.

he availability of cheaper loans for liquidity, a sector-specific approach and support for development will be crucial in the period ahead, says NALED Executive Director Violeta Jovanović. These kinds of measures would be a logical continuation of the first package of state measures exceeding five billion euros, which exceeded the expectations of businesspeople, says our interlocutor. “That was much-needed help for many companies whose operations were disrupted by the Coronavirus outbreak.” “The area of the economy gathered within NALED is satisfied that state measures included three of our key recommendations for the

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recovery of companies: postponing the payment of taxes and contributions to earnings during the state of emergency; securing favourable credit for liquidity and paying financial support to entrepreneurs and SMEs and their employees, alongside a previously adopted moratorium on loan repayments. These are also convincingly the most significant measures envisaged by almost all European countries,” says NALED’s executive director. “Our package is unexpectedly generous and, with an 11% share of GDP, is almost four times larger than the packages envisaged by Croatia or Bosnia-Hercegovina, whose measures account for three per cent of their GDP. We are also satisfied that the measures were adopted in a relatively short period of time and that they were easily administratively implementable. “On the other hand, the measures were completely linear and targeted support subsequently arrived. The government recently adopted a regulatory framework to provide businesses in the fields of tourism, hospitality and passenger transport with liquidity and working capital from the Development Fund. We will see what the result will be like, but we already have hints that interested in these loans among companies is high.”

• How does the situation look now that the economy is slowly returning to normal? Where do companies face the greatest challenges? - That depends a lot on the sector, on whether it relates to a large, medium-sized or small company. For example, hoteliers face a significantly reduced turnover of guests compared to the same period last year and will need more time to return to the 2019 level of operations. Tourism, but also passenger transport and craft services, were initially forced to completely suspend operations and they will need time to make up for that which they’ve lost. NALED conducted a survey on the eve of the adoption of the measures that showed, among other things, that 63 per cent of companies operating in the sectors of tourism, hospitality, transport, environmental protection and agriculture expect their income to be halved due to the crisis. This is not easy to compensate for and I believe that companies are faced with finding a new development strategy and ensuring the continuity of work, which NALED will support them in doing. One of the biggest challenges is also to prepare for a possible second wave and maintain operations until the threat of the virus has passed completely.

• Which other measures are needed to help the economy return to a growth trajectory as of next year? - NALED will advocate for future recovery programmes to encompass: • Measures that improve the competitiveness of the domestic economy – administrative relief, predictability and the reduction of taxes, contributions, fees and charges; • Measures that stimulate the transformation of business (from conservative to innovative), promote flexible operations, e-commerce, e-payments, the use of new technologies, R&D, improving postal services and transport and delivery services; • Measures that aim to establish models for flexible forms of employment and engagement (seasonal work, part time work, working from home and away from the premises of an employer, new forms of self-employment – work across platforms). We are certainly monitoring the situation, listening to the voice of the economy and municipalities, and proposing concrete new

measures to support local development and basic services for citizens at the local level. • A common opinion is that the pandemic has encouraged many companies to undertake the digitalisation process much faster. What are

send and receive e-invoices and submit requests and reports electronically. It is now clearer than ever to everyone how important it is to have up-to-date databases, that the possibility exists to reliably deliver electronically and that information systems are

Serbia's aid package to the economy was unexpectedly generous and, at an 11% share of GDP, is almost four times higher than the packages envisaged by Croatia or Bosnia-Herzegovina, whose measures account for three per cent of their GDP your insights? How good are existing measures aimed at encouraging digitalisation? - We are satisfied with the existing measures, and NALED will continue to advocate for the automation of procedures and the transition to electronic systems wherever that makes sense. The pandemic has brought digitalisation to the fore. Numerous companies have switched to an electronic method of doing business if they need to register workers, conclude contracts,

secure. One of the good examples that came to life well before the crisis is the introduction of e-Counters, because businesspeople who deal with cadastral records can monitor the status of their cases online, send an online application for registration and get an updated excerpt from the register. A good example is the Tax Administration, which has digitised most tax returns, among other things, enabling those who pay in lump sums to receive a decision on their

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annual tax at the beginning of the year, online in the tax postbox. They previously waited months for a decision, making it difficult for those paying in lump sums to plan their business. • How prepared were we institutionally for the mass transition to online operations: how ready were government services, the banking system and our communications infrastructure to withstand such a transition? What lessons have we learned? - The banking sector, together with the Treasury and the Tax Administration, had a significant role in the administration of fiscal benefits and direct payments, and this passed without major problems and delays. Moreover, telecommunications operators had a 50% increase in voice traffic in the first weeks and they withstood that without major problems. When it comes to lessons learned, what the crisis taught us is to appreciate digital solutions and we are now mature for e-government as a society. That’s why we should be consistent in implementing the priorities set by the Government, confirmed and recently adopted by

because I believe that all European countries and regions will activate additionally on this issue, in order to stimulate economic growth. What NALED advises is to work on improving their business environment, in order to attract investors long-term in the best high-quality way. NALED can provide them with particular support by including them in the Programme of

We are not abandoning our 10 priorities that we will deal with in 2020, because that's important for everyone who employs workers in Serbia to have better conditions for doing business the eGovernment Development Programme, which we have developed over the past year together with all relevant institutions.The eGovernment Development Programme 2020-2022 envisages that as many as 300 eGovernment services will be available in the next two and a half years, which will be used regularly by at least 1.5 million citizens and businesspeople. • How many of you local government members were in a position to maintain contacts with potential foreign investors? What do you expect to happen in the area of foreign investment at the local level, considering the economic changes globally? - We’ve seen that several investors have realised their plans in the previous period in that sense, but the fact is that the state of emergency slowed down numerous processes, including this one. Local governments are awaited by a big job in interesting investors in the coming period,

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Certification for Municipalities with a Favourable Business Environment in Southeast Europe (BFC SEE). Municipalities that have acquired this title have an advantage, because they have developed a more efficient administration by going through this demanding exercise. • What are the priorities of the work of NALED in the coming period? - When we presented our Grey Book of Bureaucratic Procedures, no one could have presumed that the world would be hit by an unprecedented health crisis that has no economic basis, but does have ramifications for the economy. We then singled out 10 priorities that we will deal with in 2020, and we are not abandoning that, because it is important in order for everyone who employs in Serbia to have better conditions for doing business. The priorities are reducing taxes and contributions on earnings, improving and

expanding the fiscalisation system, establishing a public register of non-tax charges, expanding the scope of the law on seasonal workers, developing the eAgrar system for the electronic registration of agricultural holdings and granting of subsidies, and abolishing the obligation to prove transportation costs. These are the essential changes for which we are advocating. However, in these changed circumstances that no one expected, we will follow the further development of the situation, and if there is a second wave of the coronavirus, NALED will again be the first organisation to propose adequate measures. • How much have your members contributed to Serbia coping more easily with the pandemic? - NALED is an organisation that brings together more than 300 members from the public, private and civil sectors. We are satisfied that our members, each in their own domain, have given their contribution to overcoming the consequences of the pandemic as soon as possible. We launched a comprehensive dialogue in order to support the state in a timely manner, and through the proposed measures to combat Covid-19 we acted as the voice of the economy and municipalities. Local governments have faced reduced revenues from taxes, fees and charges. That’s why one of NALED’s proposals was the formation of a special fund that would support the easier overcoming of the crisis locally. Furthermore, NALED launched an online donation platform in early April for the most endangered local governments. The goal was for us to connect and unify our members and partners in the fight against Covid-19, primarily those municipalities that need help, with companies and international organisations that are able to provide that help. To date there have been donations of food, medical supplies, protective and IT equipment provided through the platform for 41 municipalities, worth a total of more than 250,000 euros. When you add up how much socially responsible companies gathered within NALED have donated since the outbreak of the pandemic, directly and in cooperation with philanthropic organisations, that figure exceeds two million euros, and the money has mainly been used to procure urgently needed medical equipment. ■

July

INTERVIEW

STEPHEN NDEGWA, WORLD BANK COUNTRY MANAGER FOR SERBIA

Ready For A Fresh Restart

Serbia’s robust response to the health pandemic has shown good results and enabled it to be among the first economies in Europe to re-open. We are now looking forward to Serbia’s return to focusing on the medium-term agenda, where the Bank’s strengths – technical advice based on global knowledge and targeted and prudent financing – can support Serbia’s speedy recovery and accelerated growth

rior to the outbreak of Covid-19, the World Bank had announced its plans to allocate $340 million in loans to Serbia in 2020 in order to help the country improve its business environment, infrastructure and mining. We spoke with Stephen Ndegwa, World Bank Country Manager for Serbia, about the impact of Covid-19 on Serbia and the new priorities of the World Bank in this context.

• How did unfolding events impact on your plans, if at all? - We adjusted our activities to support the emergency response to the COVID-19 pandemic and its socio-economic impact, while our strategy in support of Serbia’s medium-term agenda to accelerate growth and improving livelihoods,

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including the interventions you mention, remains valid. Besides the 92 million euro COVID-19 health emergency project approved on 26th May, the Bank advanced 20.8 million euros from Serbia’s Catastrophe-related budget support programme (CAT-DDO). Moreover, restructuring three of our existing projects will provide Serbia with an additional 26.5 million euros to respond to urgent needs. This means that nearly 140 million euros was made available to the government to help finance its response to, and recovery from, the COVID-19 crisis. With the re-opening, we are discussing an acceleration of certain planned projects, including in support of macroeconomic stability, jobs- and material-intensive infrastructure rehabilitation/development, and more spirited

action to build resilience, including in health systems, and climate action. We see these as necessary adjustments, but also as a bridge to the medium-term reform agenda, for example, as outlined in the World Bank’s report: New Growth Agenda, which remains an imperative in order for Serbia to prosper. • Considering the current developments in the Serbian economy, where do you see the role of the World Bank in helping the country to address challenges? - Serbia’s resolute response to the health pandemic has shown good results and enabled it to be among the first economies in Europe to re-open. Now that the worst of the first wave of the pandemic is behind Serbia, we look to

Serbia’s return to focusing on the medium-term agenda, where the Bank’s strengths – technical advice based on global knowledge and targeted and prudent financing – can support Serbia’s ambitions. In this regard, the planned Public Sector Efficiency and Growth development policy loan will support reforms to sustain macroeconomic stability and enable public sector and business environment reforms to drive growth. In addition, we have several ongoing projects that help the public sector be more efficient, transparent and closer to citizens. Finally, we have several ongoing and planned projects that help to build and maintain physical infrastructure.

We also recommend implementing timebound interventions, since the current type and size of support is only sustainable in the very short term. Finally, transparency and accountability will be key to improving the effectiveness of interventions, but also for increasing public support. • According to your estimation from the beginning of 2020, the Serbian economy could have grown by seven per cent if state imple-

(i.e. for companies based in Europe moving some, or even the majority, of their production closer to home) and diversifying them (i.e. avoid concentrating most of the production in one geographical area). If this trend materialises, Serbia could potentially benefit. But this is not guaranteed – again, addressing the fundamentals is the key. So, if Serbia wants to benefit from the changing global economic landscape, the reforms set out in the New Growth Agenda will be critical.

• Given the novelty and unpredictability of the situation, to what extent can the Bank rely on its previous experiences? Which new policies/ types of intervention may the Bank use? - I think the most recent event that most of us will remember is the Global Financial Crisis of 2008/09, when we saw a significant worsening of the global outlook, although most analysts would agree that the current crisis and its social consequences are likely to be more severe than in 2008/09. Some of the lessons learned from 2008/09 were the need to act quickly and have

The New Growth Agenda for Serbia aims at improving fundamentals – such as governance, regulatory quality, skills and access to finance – as crucial areas for putting Serbia on a trajectory of high growth a coordinated approach to support aggregate demand. I think we also learned a lot about the need to strengthen financial sectors, and today financial sectors are in a much better shape than in 2008/09. Over the years of the Bank supporting countries to weather many different types of crises, we have learned quite a bit about how to design and implement interventions. It is important to target interventions so that only the intended groups benefit from the policies. It is tempting to go for universal support, which is easier to implement; but, given limited resources, targeted interventions are fiscally more sustainable, and maximise impact for a given level of resources.

mented reforms. In which aspects could the government still work on this reform agenda, under the new circumstances? - Working on the kind of reforms proposed in the New Growth Agenda is now even more important than before the crisis. The essence of those reforms is to put Serbia on a trajectory of high growth that can be sustained over the medium term. And for this, improving the fundamentals – first and foremost governance, but also regulatory quality, skills, access to finance – is crucial. As the world emerges from the crisis, one trend that a lot of people are talking about is the need to adjust global supply chains. This includes both shortening the supply chains

Finally, the crisis is an opportunity to reset the economy by advancing long overdue reforms for sustainable growth and achieving European standards of livelihoods – greening the economy, improving the quality and access to public services, such as health and education, and increasing public investment, including at the local level. • Given that all states are at present pressed to borrow money to help their economies survive, how much could Serbia move in that direction without jeopardising its fiscal stability? - Serbia entered this crisis in a relatively strong fiscal position. Since 2014 it turned a deficit of six per cent of GDP into surpluses of around one per cent in 2017 and 2018, slashing public debt from 67 to 53 per cent of GDP by 2019. This has allowed Serbia to put in place a generous support package, valued (including bank guarantees) at 11 per cent of GDP, significantly larger than other countries in the Western Balkans. The response to the crisis will have a high fiscal cost. The World Bank projects a fiscal

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deficit of between seven and eight per cent this year and debt levels (including guaranteed debt) increasing by over 10 percentage points of GDP in 2020, undoing much of the progress made since 2014. We do not doubt that these measures were necessary, as seen globally given the magnitude of the threat and impact. Going forward, it will be important to prior-

There are also some potential benefits in the recovery phase for which Serbia should position itself. The increased possibility of bringing supply chains closer to major markets and avoiding the concentration of manufacturing in only a few countries or regions – the so called ‘near-shoring’, as opposed to off-shoring of activities. This could mean increased

that Serbia’s system was ’in tatters’ – it was extremely stretched, but fast, corrective actions seemed to have paid off. The Bank has supported improvements in the health sector in Serbia since 2003, with a focus on health financing reforms for better efficiency, quality, access and equity. The just-approved COVID-19 emergency project will strengthen the national health system’s preparedness against subsequent pandemics. Investments under this project pandemic response simultaneously boosts Serbia’s capacity to deal with everyday health burdens, especially the inordinate burden of non-communicable diseases. • To what extent could unemployment become an issue in Serbia? - A key concern is the health crisis quickly morphing into an economic crisis, with significant social consequences. World Bank simulations on the impact of the slowdown in growth suggest that poverty could increase by 125,000 people or two percentage points. In a more prolonged economic crisis, poverty could increase by four

itise public spending. There will be a premium on increasing the efficiency of public spending, prioritising public investments with high returns and enhancing transparency and accountability. Perhaps this is not a time to build the stadiums announced last year. • What are the possible scenarios when it comes to GDP growth in Serbia in 2021, and what would be the major factors leading to different outcomes? - The World Bank projects that Serbia’s economy will decline by 2.5% in 2020. This decline is slightly lower than the average decline for countries in the Western Balkans, at 3.1%. The most affected sectors will be manufacturing, affected by supply disruptions in value chains, as well as containment measures, and certain services sectors that require a physical presence, such as transport, tourism and non-essential retail. This projection assumes that containment measures are gradually lifted in Serbia and across the world toward the end of the second quarter, and that economic activity gradually recovers in the second half of the year. As the economy recovers, we project growth of four per cent in 2021.

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A key concern is the health crisis quickly morphing into an economic crisis with significant social consequences, including an increase in poverty by two to four percentage points investment and relocations of parts of supply chains closer to major markets, for example, to the Western Balkans, given their proximity to the EU. In thinking about this possibility, it is important to continue addressing many of the issues that have constrained investment in the past – because these will remain impediments to investors making decisions on whether to come to Serbia: the business environment, fragmented regional markets or the availability of skills. • Many countries, Serbia included, met the pandemic with a healthcare system more or less in tatters. Do you envisage stronger intervention of the World Bank in that sector? - The COVID-19 pandemic has indeed exposed the lack of preparedness of many public health systems across the globe. I would not say

percentage points. We have seen unemployment increasing across the region, but the large support packages provided by many countries, including Serbia, may have prevented more economic and social suffering. In a first phase, all countries, including Serbia, have focused their support on protecting incomes of firms and individuals, for example, by providing incentives so that firms do not lay off workers. As countries embark on an economic recovery phase, support should be provided to firms that are competitive and can quickly create employment, as well as to people that may have to find employment in different sectors. Continuing to implement the structural reforms agenda, which I highlighted earlier to explain how Serbia can achieve growth of seven per cent, will also contribute to more and better jobs. ■

JELENA KNEŽEVIĆ, CERTIFIED AUDITOR, MANAGING BUSINESS DIRECTOR, LEITNER LEITNER SRBIJA

Thinking Ahead & Working Together Innovatively LeitnerLeitner is one of the leading tax advisory and auditing firms in Central and Eastern Europe, which is increasingly recognised in Serbia due to its professionalism and the high quality of its services. LeitnerLeitner has teams of experts who work together across disciplines if the situation calls for it

s your personal advisor, LeitnerLeitner supports you in all of your tax-related issues, allowing you to concentrate fully on your business. That saves time and unnecessary effort. Our teams of experts work together across disciplines if the situation calls for it, says Mrs Knežević. • LeitnerLeitner Srbija was established in 2011 and in less than a decade has grown to become one of the country’s most influential companies in the area of tax consulting and auditing. Clients value your professionalism and high quality services. Is there anything else that sets you apart from the competition? - We strongly consider that the outstanding technical skills of our team and the high quality of LeitnerLeitner services are key success

employees and their knowledge are our most valuable resource. LeitnerLeitner is always orientated towards the professional and personal development of our employees by investing in their continuous education in the fields of tax, audit and accounting. • Can a good and successful business strategy be built without an individual approach to the client, their needs and specificities, whether that specificity refers to a product and service, the market etc.? - An individual approach is an imperative and the most important technique to provide unique service. We live in a time of constant changes of legislation and it is therefore crucial to constantly be up to date with the latest amendments. Through the knowledge of our employees, we

Our teams of experts work together across disciplines, if the situation calls for that factors in Serbia. Whether you are an SME or an international group, we never lose sight of our goal, which is to identify, coordinate and realise optimisation potentials. We think ahead with the aim of realising viable, innovative solutions for our clients, and creating sustainable added value. As we work in the financial services industry,

are able to provide high quality services to our clients, making us successful at the international level. Our experts are passionate about finding feasible solutions for clients’ tax, audit and financial advisory issues. As your personal advisor, LeitnerLeitner supports you in all of your tax-related issues, allowing you to concentrate

fully on your business. That saves time and unnecessary effort. Our teams of experts work together across disciplines if the situation calls for it. This rapid transfer of knowledge ensures that you have the combined knowhow of our entire company at your disposal at all times. • How would you evaluate the current economic environment in Serbia? How much will the pandemic that we’ve gone through, as well as the fact that this is an election year, impact on our economy? - The impact of the Covid-19 pandemic on the world economy, and thus Serbia’s, economy is being evaluated as significant, with some sectors sustaining greater losses compared to others, which will try to mitigate possible losses and evade an “out of business” scenario. The Guarantee Scheme for supporting the economy that was adopted by the Republic of Serbia is assessed as being positive, introduced with the intention of providing some kind of “time out” for registered business. The economy curve is anticipated as W shaped, with a sharp incline following the establishing of control of Covid-19, followed by another decline. However, a second and stronger rise will come after all the consequences of Covid-19 are neutralised and the economy takes its “natural course”. ■

July

BUSINESS

EPS - ALWAYS WITH SERBIA’S CITIZENS AND ECONOMY

The energy system worked reliably throughout the epidemic, thanks to the extra efforts of the employees of Elektroprivreda Srbije [Electric Power Industry of Serbia]. During this time of crisis, EPS went out of its way to meet the needs of all citizens

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Enough Energy, Continued Investment

he Covid-19 Coronavirus epidemic changed life and our everyday existence as we know it in record time, limiting movements and economic activity, but even during difficult times there are activities and occupations that don’t have the right to rest. There are always employees in the electricity sector, because a stable and high-quality supply of electricity is the first condition for everyone to be able to do their jobs and to enable Serbia to overcome one of the greater challenges in recent history. They have been, and remain, a pillar of support for citizens and the economy. Miners, engineers, fitters, dispatchers and all

other EPS employees are the ones who enable enough electricity to be available for households and ensure the safe operation of hospitals, the police, the army, stores of food and medical equipment, grocery shops, pharmacies... The energy system functioned reliably the entire time, thanks to the extra efforts of EPS employees. Sufficient electricity was produced for households where all members were together 24 hours a day, as well as for public facilities and industries that weren’t allowed to stop. Miners at the Kolubara and Kostolac opencast mines worked during the state of emergency, 24 hours a day, every day. Coal was produced as it is under

STABLE FUNCTIONING We don’t see EPS workers every day, but their work secures enough electricity for citizens. They contribute to the stable functioning of the state, and as many as 20,000 people worked hard every day, under very complex conditions, during the state of emergency.

regular conditions, because the continuous production of this resource is essential for the stable production of electricity. All thermal and hydro power plants worked continuously, and special emphasis was placed on the distribution and supply of electricity. Installation teams worked to the maximum in order to repair any possible network failures as soon as possible. It was crucial that there were no interruptions in the distribution of energy to healthcare institutions and, in particular, additional power was provided for so-called Covid-19 hospitals. At the company they say that every part of the EPS system is important, every person, which is why all protective measures were taken from the very first day. Workers received protective equipment, while all premises and the wider working environment were regularly disinfected. “Employees are the greatest value of EPS and taking care of them is the top priority. We secured all protective equipment and strictly adhere to the measures that protect the health of workers during this difficult time of the fight against the Coronavirus,” noted Milorad Grčić, acting director of EPS, speaking during the epidemic. “EPS has always been a stable pillar of energy for the citizens and economy of Serbia, especially when that was needed the most. Thanks to all employees, who participate directly in the process of producing coal and generating and distributing electricity and who take the situation seriously and respect the measures.” “This job does not exist without people, but we know that we have to keep our distance, wear masks and gloves, and take care because of ourselves and our families, and especially because of our responsible job. There must always be electricity, and we’ve provided it in all difficult times, and that is now our most important task. It is always difficult at the mine, now especially, and it is no easier in power plants and in the field,” says one EPS employee.

“We are aware that many human lives would be endangered without electricity, and that’s why we are extra careful.” During this time of crisis, EPS went out of its way to meet the needs of all citizens, not only those who were unable to pay their bills on time due to the state of emergency and the ban on movements. It was therefore decided to enable not only pensioners, but all citizens of Serbia to settle their financial obligations by the end of June and to extend the five per cent discount on all electricity bills during the state of emergency. This relates to all three bills for electricity consumed during the state of emergency (March, April, May) and a five per cent discount will still be applied if they are paid in full by as late as 30th June. These discounts will be shown in the bill that arrives in July, i.e. the first following bill following payment. moreover, interest will not be calculated on any of these three bills for the months of the

state of emergency, provided obligations are settled by 30th June. Investment projects also continued during the epidemic. One of the largest projects at EPS, the construction of a desulphurisation plant at the TENT A power plant, is progressing at a very good pace. “The largest environmental project in Serbia, on the construction of a flue gas desulphurisation system at the NikolaTesla AThermal Power Plant in Obrenovac, is progressing well and will enable sulphur dioxide emissions to be reduced 10 fold,” said EPS acting director Grčić, speaking during a tour of the plant’s construction site. “With this project we are not only guaranteeing clean air for Obrenovac and residents of Obrenovac and the surrounding area, but rather this project guarantees the extending of the work of TENT A, EPS’s largest thermal power plant. The contract for the desulphurisation system at TENT A was signed in 2017, while works are now progressing at an ever better pace and we expect the plant to become operational as of May 2023. This will reduce SO2 emissions on units A3, A4, A5 and A6 by as much as 10 fold.” Along with ensuring the stable production of electricity, EPS is working intensively on the modernisation and expansion of its distribution network. New substations have been made operational and launched all over Serbia, in Ub, Lazarevac, Kruševac, Loznica and Gornji Milanovac. With this a high standard and quality of electricity supply is enabled for households and businesses. Better living conditions for citizens and infrastructure for opening new factories and building highways and corridors are created through EPS’s investments in Lazarevac, Loznica and Mionica. The 110kW Kruševac 3 substation, in which 140 million dinars has been invested, has been reconstructed and put into operation. ■

GOOD RESULTS Mining production in Serbia during the first quarter of this year was nine per cent higher than in the first quarter of 2019, and production during April was six per cent higher than it was during April 2019. Miners managed to dig more coal even under the conditions of the epidemic. The production of electricity and total mining is expected to be higher in 2020 than it was in 2019, even under the conditions of the state of emergency. Miners and energy workers provide, and will continue to provide, a huge contribution to ensure the economy in 2020 will be among the best, from the perspective of GDP in the region, but also in Europe as a whole.

July

BUSINESS DEJAN VUKOTIĆ, CEO OF AOFI – SERBIAN EXPORT CREDIT AND INSURANCE AGENCY

Exports Drive The Entire Economy For the 15 years since its establishment, Serbian Export Credit and Insurance Agency (AOFI) has achieved successful international cooperation and positioned itself as a market leader and the most reliable credit insurer. This is always important for export-orientated companies, especially in years of crisis like this one

ith the aim of overcoming the crisis caused by the Coronavirus outbreak, AOFI has granted a period of suspension on all due and outstanding liabilities to all credit borrowers until the end of the year, after which the borrowers will be offered the possibility of annexing and rescheduling their repayment obligations in 24 instalments.

• Serbian Export Credit and Insurance Agency celebrates its first 15 years of operations. How satisfied are you with the results achieved and what makes you especially proud? - The aim of AOFI is to improve the export-orientated economy of the Republic of Serbia, because exports is a driver of the entire economy. During past 15 years of operations we have constantly been at the service of our clients, providing them with the opportunity to utilise and improve their export capacities. We have achieved successful international cooperation and positioned ourselves on the market as the leader and the most reliable credit insurer. We have signed several international cooperation agreements, among which I would single out reinsurance agreements with leaders such as Swiss re and R+W industries.

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• AOFI has established a moratorium on all receivables with the aim of overcoming the negative impact on the export-orientated economy of Serbia caused by the Covid-19 pandemic. How important is that to your clients? - The Government of the Republic of Serbia adopted a programme of economic measures to support the economy, with the aim of reducing the negative effects of the Covid-19 virus pandemic, “weighing” 5.1 billion euros, which represents half of the annual budget of the Republic of Serbia, or 11 per cent of GDP. This programme is all-encompassing and will greatly help the economy to more easily overcome this global crisis, that has impacted negatively on far stronger economies around the world. Huge fundings have been provided, which will enable – in addition to the continuation of GDP growth after the crisis – the preservation of the level of foreign trade exchanges, i.e. the preservation and growth of the level of exports of the Republic of Serbia. Apart from participating actively in the implementation of the adopted measures, the Agency has brought the decision to establish the moratorium on all receivables, with the aim of overcoming the negative impacts on the export-orientated economy of Serbia. Considering the situation that has emerged, as well as the

fact that exporters face liquidity issues and thus more difficult repayment of their obligations, AOFI, with its the primary role to impact exports growth and provide support to export-orientated businesses, has granted a period of suspension on all due and outstanding liabilities to all credit borrowers until the end of the year, after which the borrowers will be offered the possibility of annexing and rescheduling their repayment obligations in 24 instalments. • This pandemic, which has blocked the entire world, has shown us just how fragile even the most developed economies are. What could we learn from that; what could we change in the future? What should be done in the period ahead in order to preserve the Serbian economy’s exports? - The crisis has brought the problem of collecting receivables to Serbian exporters. Thus, it has emphasised the importance of credit insurance, which is one of the most important products under AOFI products and services range. Credit insurance is the product that can and should enable Serbian exporters to retain their markets and buyers in crisis like this one, but also to try to conquer new markets and thereby improve the foreign trade position of the Republic of Serbia. ■

Citizens And The State Count On Us Pošta Srbije, Post of Serbia, is one of the country's largest and most successful public companies, thanks to the fact that it is constantly improving, but also boasts almost 15,000 dedicated workers, coverage of all 88,000 square kilometres of Serbia, availability in more than 1,900 places, and a tradition dating back 180 years

ost of Serbia is an indispensable partner in state and social projects, ready to make all its resources available in both regular and extraordinary circumstances, says CEO Mira Petrović. • What is important for the sustainable and profitable survival of such a large system as Post of Serbia? - The measure of Pošta’s success can be boiled down to the difference between an innovative entrepreneur and an opportunist. As communication progresses, so does society, and one of the main intermediaries in this process is Pošta, which applies the latest trends and achievements

Photo: Foto Pošta/ A. D. (Aleksandar Despotović)

MIRA PETROVIĆ, POŠTA SRBIJE CEO BUSINESS

strives for as a whole – gender equality and the equal participation of women in all spheres of social, economic, public and political life. • When you say contribution to society, what do you mean specifically? Have recent events caused by the Covid-19 pandemic once again put the role of Pošta to the test? - During the state of emergency, Post of Serbia was obliged to maintain continuity in the provision of its services and it responded successfully to this mission. Alongside that, it also performed tasks entrusted to it by the state, such as distributing protective equipment throughout Serbia, which showed the impor-

The state is where its connections with citizens are, and generations of postal workers live with the awareness that they are holding this society's pillars of communication in its field, as has been the case with the introduction of the telegraph, telephone traffic, radio signals, the first cable televisions and electronic certificates. However, the changes introduced by Pošta ensure that this system is also avant-garde in social events. Did you know that Pošta was the first state institution to employ women, at the end of the 19th century, and did you know that Post of Serbia is perhaps the only large system today in which women are at the forefront of the senior management? Thus Pošta confirms in practise that it has already applied that which society

tance for the state of having a strong public operator of which it is the founder. Pošta is a recognised partner in national projects, such as recording tourist vouchers and requests for the replacement of outdated health insurance cards, in the project ‘Take the receipt and win’, in the development of a unique Address Register in Serbia, the Main Civil Register etc. • Despite complex market conditions and extremely strong competition, Pošta constantly

achieves significant growth in express and logistics services. How do you achieve that? - Constant investments in infrastructure, capacity expansion and the automation of processing work that was launched by my predecessor doesn’t only mean raising the quality for the end user, but also constantly maintaining high competitiveness. Considering our leading position, in this way we also contribute to the overall development of the market. When your mission is development, then it is inevitable that the scope of services and revenue will grow. A second factor is people and experience, and the experience of Pošta has developed over 180 years. Consumers awarded that with the “My Choice 2020” acknowledgement, while the Universal Postal Union awarded it with the “Golden A” certificate for quality management in international postal traffic. • With the aim of always being close to customers, you constantly expand your network of branches, counters and the range of products and services you provide. Could you reveal part of your plans to us? - We will establish the “Kragujevac” postal and logistics centre by the end of this year. We have invested in a complex of approximately 2,000m2, the purpose of which is logistics and the automated processing of parcels. This facility will improve our business operations, but also contribute to regional development. We will also draw attention to the problem of environmental pollution this year by including a contingent of electric vehicles in our fleet for the first time. ■

July

BUSINESS

JELENA GALIĆ, AIK BANK CEO

New Markets Are Our Aim AIK Bank's entry into the market of the European Union testifies to the strength and sustainable development of the foundations upon which it bases its operations. At AIK they say that this encourages them to continue implementing the strategy of further expansion in this part of Europe, as a financially strong and credible banking group

he banking sector in Serbia is most in line with EU regulations, compared to other areas of business in our country, which in the further process of harmonisation with European regulations can also contribute to a faster alignment to EU directives and standards in other sectors, reveals Ms Galić for CorD. • With the takeover of Gorenjska Bank slightly over a year ago, AIK Bank became the first bank from Serbia to enter the European Union market. What were your expectations and were they met? - AIK Bank’s focus is on business development, the expansion of its market presence and innovation, and in accordance with that, among other things, the process of taking over Slovenia’s Gorenjska Bank has also been concluded successfully. By strengthening its position in the region, AIK Bank has strengthened its position and gained the opportunity, together with Gorenjska Bank, to offer customers a quality service in the European Union. With this takeover, AIK Bank became the first bank from

July

Serbia to enter the European Union market, which testifies to the strength and sustainable development of the foundations upon which it bases its operations. We decided on Gorenjska Bank because it is stable, with a good capital base, locally recognisable and provides good foundations for further development across the entire region and, together with AIK Bank, on the international market. In short, these

market and our goal is indeed to position ourselves as one of the leading banks of the banking market in this part of Europe. I’m extremely proud that, during this takeover process, the bank has shown its capacity to respond to the complex and demanding procedures of the European Central Bank, the Bank of Slovenia and the National Bank of Serbia, which encourages us to continue im-

I have the impression that clients are satisfied and that the banking sector was really up to the task during the state of emergency are our expectations and I’m sure we’re on the right path to realising them. • We assume that the goal is for AIK Bank to gradually position itself as one of the leading players on the banking market in this part of Europe. Are we off the mark? - As I’ve already stated, we are the first bank from Serbia to enter the European Union

plementing our strategy of further expansion in this part of Europe, as a financially strong and credible banking group. • Thanks to the consolidation of the banking sector that has started, the possibility of financing large regional development projects has increased. Would that contribute to connecting economies, expanding markets,

strengthening competitiveness and accelerating the region’s economic development? - All the markets of our region are small when viewed individually. If the regional market does not unite, we will all remain without the benefits it can bring. Here I don’t mean only the banking sector, but rather economic cooperation in total. In that sense, the consolidation of the banking sector in the region contributes to the development and expansion of regional cooperation between the economies of different countries, with which the market expands, thus accelerating the economic development of the entire region. Compared to other areas of business in our country, the banking sector in Serbia is most in line with EU regulations which in the further process of harmonisation with European regulations can also contribute to a faster alignment to EU directives and standards in other sectors.

• How do you rate the set of economic measures introduced by the state to help both citizens and the economy recover as easily as possible from the financial hit brought by the pandemic? - The Government of the Republic of Serbia’s set of economic measures aimed at minimising the negative consequences of the Covid-19 pandemic arrived at the right time.

• Speaking at the third online conference entitled “Business in Challenging Times”, you discussed the good organisation of banks under the conditions of the pandemic. Do you still think that your industry responded quickly to all requests and expectations of clients? - Solidarity and mutual support are most

Our goal is to upgrade our traditional banking with digital banking, thereby creating a complete offer of financial products and services available to all important in times of crisis. In that sense, the banks reacted responsibly and supported all measures in the direction of preserving financial stability and supporting the real sector of the economy. Moreover, we improved and strengthened online channels, in order for as many of our clients as possible to be able to use as many services as possible through e-banking and m-banking. Likewise, banks enabled their networks to be available to all clients, in order for the payment system to function unhindered, and especially for us to organise all pensioners receiving their pensions on time. In that sense, I think that clients are satisfied and that the banking sector was really up to the task during the state of emergency.

I believe the package of measures adopted encompassed the most important aspects of support for the economy and I firmly believe it will fulfil its basic aims related to preserving jobs and provide a chance for the survival of primarily micro, small and medium-sized enterprises, which are extremely vulnerable at present. When it comes to the third set of economic measures, I expect it will reduce external factors, such as the decline in demand and interruptions to supply chains and their consequences, while the fall in social product will remain within expected limits. • How many debtors have decided to opted to make use of the moratorium on loan repayments? Do you expect an increase in NPLs?

- Immediately at the beginning of the emergency health situation in the country, the NBS brought the decision to introduce a three-month moratorium on the repayment of all loans. The procedure has been simplified to the maximum, so at the level of the entire banking sector, in the domain of retail banking, about 90 per cent of users have been under a moratorium since 31st March, while in the domain of corporate banking that share is slightly smaller. In addition to this, banks have also supported the real sector of the economy through the guarantee scheme for liquidity and working capital loans, so in total sums we’re talking about two billion euros with which banks are, practically, helping the economy and citizens to more easily overcome the state of emergency caused by the pandemic. In that sense, we shouldn’t expect a large growth of NPLs in the coming period, and considering the experience from the previous crisis of 2008, banks have in the meantime equipped themselves well to respond to “external shocks” in a timely and adequate manner. • Although your bank has taken serious strides into the world of digitalisation and new technologies, you constantly offer additional innovations to clients and the market. What did your plans include in total for this year and will you postpone any of that? - Through the building of a strong digital platform, we want our clients to see AIK Bank as a personal bank that understands their individual needs and provides them with the desired services, regardless of time and location. Our goal is to upgrade our successful traditional banking with digital banking, thereby creating a complete offer of financial products and services, accessible to all and tailored to individual needs. We want to use online banking to make it easier for our clients to carry out all banking transactions, the backbone of which is mobile banking, to which the complete offer of the bank is transferred. Our plans include various online banking products, both in the segment of retail operations and in the segment of operations with small and medium-sized enterprises, and at this juncture we estimate that we will make them available to our clients during this year, according to initially planned dynamics. ■

July

BUSINESS

NIHAT BIŠEVAC, MAYOR OF NOVI PAZAR

Life Has Returned To Novi Pazar Thanks to political relaxation, the creation of a favourable economic environment for investment and development, as well as a large increase in the budget, over the past four years Novi Pazar has truly become the economic, cultural, transport, educational and sporting centre of the region

ur future will be the development of small and medium-sized enterprises, agriculture and tourism, for which huge potential exists. This has been recognised, among others, by our successful people living in the diaspora, Novi Pazar natives who want to invest in their city, notes Mayor Biševac. • Has Novi Pazar become a regional centre and a better place to live and invest over the past four years, as you promised when you became mayor? How do you see your city in another four years? - The main goal of the local government was for Novi Pazar to become a better place to live, and we succeeded in that, because we are recording an increase in the number of residents. In the last three years we’ve issued more than 40 permits for the construction of residential buildings, and all of that must be accompanied by adequate infrastructure. We’ve invested more than five million euros in sorting out roads and communal infrastructure, but there were also sufficient funds for health, education, culture and sport. Reconstruction of the Stefan Nemanja Primary School cost half a million euros, while reconstruction of the high school cost

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70 million dinars and 600 million dinars was invested in the Bratstvo Primary School, which will have a swimming pool when we open it in autumn. We are awaited by the arranging of the majority of rural schools and the construction of a new one, while planned investments in healthcare should reach 30 million euros. Our budget in 2016 amounted to 2.315 billion dinars, while this year’s is 3.150, which represents an increase of around 835 million in just four years. Apart from health and education, our focus was also on culture and sport, so I can state proudly that we are among the cities that invest the most in culture and that Novi Pazar is a city with four super league clubs. That’s a big deal for a small city. • Which projects are worth investing in? What will improve the life of citizens the fastest and the most? - Investing in infrastructure, primarily in roads, pays off the most, because it attracts investors, so in the period ahead special attention should be paid to completing the bypass around Novi Pazar, arranging riverbeds, building bridges in the city centre etc. Thanks to the roads that have been built to date and the fact that Novi Pazar is an open-air museum, because there’s nowhere else in the world with so many cultural and historical monuments of Christian and Islamic culture that are under UNESCO protection, tourism is increasingly

becoming a development opportunity. This has also been recognised by our successful people from the diaspora, Novi Pazar natives who want to invest in their city. They have built eight new motels, while they are also investing in the reconstruction of existing hotels, so we are recording an increase in the number of tourists year on year. I’m particularly proud of the fact that we bought a plot of land for the construction of a new cemetery, occupational medicine, a new school and a biomass heating plant. This last project alone - the construction of the heating plant - is worth 6.5 million euros and is significant for multiple reasons. • Will the completion of the highway through Duga Poljana and increasing the number of routes from Morava Airport near Kraljevo contribute to the economic development of Novi Pazar and Sandžak as a whole? - Yes, that will certainly be very important for us. Novi Pazar has to date been overlooked by foreign investors due to the distance from the highway and airport. I’m convinced that many large investors, including our own people who’ve built large business systems in Turkey, will invest in this area. Turkish companies have so far invested everywhere else in Serbia, because we had nothing to offer them, but now that has changed, and will be even better. ■

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CCIS AND USAID OVERVIEW OF THE STATE OF THE ECONOMY

Regarding the current situation caused by the Coronavirus pandemic, the Chamber of Commerce and Industry of Serbia and the USAID project Cooperation for Growth conducted two iterations of the online survey “Overcoming the Crisis Together”, dedicated to Serbian businesses and entrepreneurs. The questionnaire focuses on the economic consequences of the crisis and its impact on doing business

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Overcoming The Crisis Together

he goal of the survey is to provide a quick and valid overview of the state of the economy, during and after the outbreak of the crisis, and convey businesses’ attitudes related to the effects of the crisis, opportunities to adjust business models to a significantly changed environment, measures businesses have taken, as well as measures applied by state authorities to support the private sector. “The findings of the survey are valuable because they are “mirroring” the state of the economy and the reactions of businesses in the seventh week from the day of the decla-

ration of the state of emergency. We would like to express our sincere gratitude to all businesspeople and entrepreneurs who participated in the survey. Representatives of 806 businesses participated in the first iteration of the survey, conducted in the last week of March – the third week after the beginning of the crisis. The second phase of the survey was conducted at the end of April, in the seventh week since the outbreak of the crisis, with the participation of 1,000 businesses,” said Dragana Stanojević, Chief of Party at USAID’s Cooperation for Growth project. After seven weeks of the crisis, the strong-

est effects impacting adversely on businesses are working time limitations and work from home, an inability to cover underlying costs, and a lack of contact with clients. This is followed by an inability to collect domestic claims from the private sector, postponements and cancellations of orders, as well as difficulties in transport and logistics. The findings underline the sensitivity of the private sector to liquidity, as well as to workforce optimisation, including working remotely. Tourism and hospitality stand out as the hardest hit business sector, followed by the creative industry, transport and the storage industry. Findings show that every other business has organised work from home for part of their employees (51% of respondents). Firms have also reduced working hours (43%), while every third business has started negotiations with creditors about delaying debt repayment (31%). Results also show that 20% of respondents have partially closed business operations, while 14,6% of them opted to halt all business operations temporarily. “It is interesting to emphasise that around one-fifth of respondents (21,2%) have changed their business model/production algorithm, so we can conclude that some of the Serbian

tially (26%), while 12% of companies have already reached the same level of business performance they’d achieved before the crisis. Every third company can adapt, partially (26%) or completely (5%), to online business. However, most respondents (2/3 of them) need physical space to do business, due to the nature of their operations. Representatives of around four per cent of enterprises

DRAGANA STANOJEVIĆ

It is interesting to emphasise that around one-fifth of respondents (21.2%) have changed their business model/ production algorithm, so we can conclude that some of the Serbian businesses have been better prepared to face this unpredicted situation, adapting more easily and facing necessary changes more courageously businesses have been better prepared to face this unpredicted situation, adapting more easily and facing necessary changes more courageously,” explained Stanojević. Although the crisis has had a drastic impact on decreasing capacities for production and/or services, 60% of respondents, the majority of firms have not decided to lay off employees, while the absolute majority of them have maintained the same number of employees they had before the crisis (85%). An encouraging fact is that a quarter of businesses have already recovered par-

determined by the size of the company. Every other entrepreneur is present on the internet, while practically all medium-sized and large enterprises have a website. This fact clearly emphasised the importance of being present on the web and sends a strong message to small enterprises that it is almost impossible to manage a business without an online presence. It is noteworthy that a significant number

cited financial or other barriers in switching to an online business model. If we look at this finding by firm size, entrepreneurs and micro-businesses can more easily switch to online operations than larger companies. A web presence and eCommerce are globally proved as important levers of growth (even before the crisis) and as basic “survival” tools in the crisis caused by Covid-19. According to the survey, Serbian businesses are aware of the importance of an internet presence – 85% of them already have a webpage or plan to create one. Having an online presence is partially

of micro-enterprises and entrepreneurs that do not yet have webpages plan to launch them (17.6% and 20/5% respectively). This once again shows that micro and small enterprises understand that the internet is a unique space that may provide them with an opportunity to compete for their web presence, increasing their visibility and attracting customers incurring considerably lower costs compared to the traditional offline businesses. The sectors with an above-average presence on the internet include the creative industry, the industry of non-food products, IT, tourism and hospitality. However, every other company in agriculture and construction, as traditional sectors, has a webpage and an online presence. It is concerning to a certain extent that food and beverage production and agriculture are not sufficiently present online, as they sustained a huge hit as a result of the Coronavirus and quarantine, when having an online presence was the only way for them to promote themselves, find consumers and

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partially compensate for interruptions in supply and distribution chains. This result additionally highlights the need for systemic solutions, such as unique food marketplaces. The number of eCommerce firms in Serbia is on the rise (via their webshop/or via “third party” webshops) and amounts to around 20%, compared to 12% recorded in the Business Survey conducted by USAID’s Cooperation for Growth project last year. “It is an encouraging fact that many enterprises offer e-banking and m-banking (85.6%). However, only 12% of respondents offer some type of card payment – whether it is direct payment or payment on delivery. This has been very important during and after the crisis caused by Covid-19, because cashless payments are much safer compared to cash payments,” insists Stanojević. A small percentage of firms (16%) offer more than one payment method to their clients. In all transactions, especially in B2C ones, the most optimised eCommerce offers all types of payment methods to customers. If firms do not offer this option, they lose customers.

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A third of companies will need three to six months to recover, with larger companies recovering faster However, it is assumed that a significant section of respondents in this survey are related to B2B eCommerce, for which e-banking is an optimal payment option. Businesses from the Belgrade area are engaged in eCommerce at a level above average compared to firms from other regions. According to size, entrepreneurs and micro enterprises were the hardest hit. According to sector, tourism and hospitality, the creative industries and transport are the worst affected. The crisis has deepened – the most common estimated recovery time is from three to six months, followed by six to 12 months. Following the first phase of the crisis, every other company said it believed its operating revenues had at least halved compared to the same month last year. However, the percentage of businesses expecting a huge loss

exceeding 80% declined slightly compared to the beginning of the crisis, amounting to 23%. Observing the losses estimated for 2020 compared to the 2019, larger companies estimated smaller losses. Only 13% of large enterprises estimate a loss of more than 80%. On the other hand, entrepreneurs and micro enterprises stand out as being particularly hard hit: a third of them estimate a loss exceeding 80%. When it comes to sectors of activity, the biggest losses compared to the same month last year were recorded in tourism and hospitality (75% estimated a loss exceeding 80%), but also in the creative industries, as well as transport, storage and trade. When it comes to businesses’ expectations of the economic impact of the Coronavirus outbreak on falling sales in 2020, as compared to 2019, the number of those who say

they expect more than a twofold reduction in sales declined slightly. It comes as no surprise that the most severe consequences for sales are expected by the tourism and hospitality sectors, the creative industries, and transport and storage. What is a new is that the worst affected sectors are followed by the IT sector, which, along with transport, indicates that the decline in the performances of sectors hit severely and immediately by the crisis is now impacting other sectors within the value chains. A third of companies will need three to six months to recover, with larger companies recovering faster. The absolute majority of companies (91%) still expect difficulties in fulfilling their obligations. After the first phase of the crisis, every other firm expected to have difficulties fulfilling their obligations for up to 60 days, now, in the seventh week, firms perceive that those liquidity problems will last 90 days or more, indicating that the duration of the crisis has hit the economy deeper and recovery will take longer. In the seventh week of the crisis, businesses estimated that, on average, they will need more time to recover than was estimated at the very

through the payment of the minimum wage (76% of companies rate this as useful), deferrals of payments of taxes on earnings and contributions (69%), deferrals of advanced payments (61%), and guarantee schemes for supporting the economy (53%).

The decline in the transport, tourism and industrial sectors significantly affects the decline in other businesses in terms of their supply/value chains beginning. Assuming that the crisis ended in the last days of April, a third of companies believe that they will recover in a period of 6 to 12 months (22%) or a period longer than 12 months (8%). About 30% of companies believe that they need 3 to 6 months to recover, while about 10% of companies estimate that they could recover in a month. When it comes to large companies, as many as 19% think that a month is enough to recover. Businesses are showing great interest in state aid measures: 64% have already applied, a quarter plan to do so and only 10% are not interested at all. The most vulnerable sectors applied first for some of the packages of economic measures. According to company representatives, the most useful measures are direct assistance to the MSME sector

It is important to note that a significant number of entrepreneurs (from 10 to 14%) need additional assistance in using state aid measures, which indicates that any practical and educational support that could be offered to companies by business associations, international organisations or state institutions is welcome. The decline in the transport, tourism and industrial sectors significantly affects the decline in other businesses in terms of their supply/value chains. “Overcoming the crisis is not a phenomenon that can be observed individually. Generally, the business of one company is part of one or more supply chains/values, so the speed of recovery of a particular company should be observed in terms of the intensity

of the impact on other enterprises in the chain,” explains Stanojević. Most firms, two-thirds of them, are impacted with changes in their operations by up to 30 other firms in the supply chain moving backwards (their B2B suppliers), and by up to

100 other firms in the supply chain moving forwards (their B2B customers). However, some companies are highly intensively connected with other companies: 10% of them have more than 150 suppliers, while a quarter of them place products and services for more than 150 other companies. Transport, tourism, and industry stand out as the sectors with the largest share of companies that, through changes to their operations, directly or indirectly impact on the business operations of other companies within supply/value chains, which indicates that we can expect a second wave of the economic crisis over time The USAID project Cooperation for Growth, in cooperation with the Chamber of Commerce & Industry of Serbia, will continue to monitor the Serbian economy and all consequences caused by the Coronavirus crisis. At the beginning of the July we will publish the findings of the third iteration of the survey, which will focus on the obstacles that businesses see obstructing their road to recovery. ■

July

WORLD BANK

SERBIA’S NEW GROWTH AGENDA

Forging A New Future

Serbia is at a crossroads. Although current growth rates are improving incomes in Serbia, they are not bringing the country closer to average living standards in the European Union fast enough. The current 3 to 4% growth per year is at the upper end of Serbia’s current potential growth

o reach European levels of prosperity, Serbia must embrace a new, ambitious agenda for growth. Two decades ago, Serbia made the choice to leave behind years of war and rapidly reconstruct its economy. It curbed hyperinflation and steadily restored broken infrastructure. Real GDP growth of 6.6% ensued, interrupted only by the global financial

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crisis. Now, as then, Serbia must be willing to set another high goal of doubling its income in a decade. Only strong political will, stemming from a broad consensus, can bring about the policies needed to achieve this. Serbia can deliver on an ambitious reform agenda for growth, as it has before. Skeptics may argue it is unrealistic for Serbia to grow at seven per cent instead of 3-4% annually, or to generate 100,000 jobs each year, or to abandon the legacy of pervasive state control of the economy. But in 2014 sceptics would have dismissed the likelihood that Serbia would, in 3-5 years, turn a deficit of six per cent of GDP into a surplus, nearly halve unemployment from almost 20% to 13%, or slash public debt from 67 to 54% of GDP. Yet it did. Sustaining the success of these reforms underpins the foundation for the New Growth Agenda. Serbia can become a fast-growing, sophisticated modern economy, driven by its private sector, if it maintains the hards won gains of macroeconomic stability and advances transformation in the following areas: Boosting investment. Investment, private and public, is an expression of confidence in the future, and higher levels of it will be both the cause and effect of higher growth in Serbia. An

overall investment level of at least 26% of GDP would be needed to reach a 7% growth rate and to sustain that for a prolonged period of time. Based on historical patterns in similar countries, Serbia could add one percentage point to annual growth by increasing public investment alone to five per cent of GDP. Considerably more could come from closing the gap in private investment, given that Serbia’s private sector invests nearly three percentage points of GDP less than firms in Western Balkan countries and nearly six percentage points less than those in Central and Eastern Europe. Ensuring quality of investment is essential as well, including reforms of the public investment management system. Financing growing firms. The financial sector enables investment. Obtaining credit can be the difference between expansion or stagnation for small enterprises or start-ups that have innovative ideas and entrepreneurial drive. And in Serbia the financial sector lacks instruments that best suit their needs. Introducing new financing options and invigorating capital markets would help increase the ratio of private-sector credit to GDP, which is currently only half of the EU average. Achieving EU levels of financial intermediation would boost Serbia’s GDP by 1.3% annually.

Skilling workers. There is no better example of investing for the future than better education for Serbian children and youth. Ending functional innumeracy and illiteracy is not only the right thing to do, but would also supply Serbia’s companies with better-trained workers. Labour inactivity remains high, more so among women and the Roma population. High labour taxes, particularly for lowwage earners, diminish work incentives. Reducing non-wage costs and making labour tax and social security contributions more progressive would foster labour participation. Over

two-thirds of expanding businesses are unable to find workers with the right skills. A broad reform programme to upgrade skills – from curricula reform to quality assurance systems – and evidence-driven active labour market policies would improve quality. These reforms could add 1.3% to GDP growth annually. Raising productivity. The productivity of private firms will largely determine Serbia’s prosperity. With Serbia’s average firm productivity low (Serbian manufacturing firms produce only a third of what EU firms do, using the same inputs) and slowgrowing (less than 1% annually), there is much room for improvement – and with it significant potential for Serbian firms to produce more, hire more people, and pay better. Domestic private firms are the backbone of the Serbian economy, employing over half of the formal private labour force and exhibiting the highest recent productivity growth. Over three-quarters of net job creation between 2014 and 2017 was from only 5% of firms. Removing constraints to doing business, entry and competition

should help increase the number of high growth firms. In the same way, policies that encourage competition, level the playing field and equalise access to finance, as well as improve skills, would allow for more labour and capital to flow to the most productive firms, increasing overall productivity in the Serbian economy. A one per cent increase in productivity can bring an additional 1% increase in GDP. More productive firms have a better chance of competing internationally and bring the best business practices back home. Expanding exports. Exports of goods and

(e.g., access to raw materials, cost and inefficiency of border compliance). A firm that exports is twice as productive as a firm that does not, as a consequence of higher competition abroad. Low levels of investment in new technologies, issues with trade facilitation and other behind the border constraints on potential exporters can prevent Serbian businesses from entering international markets or expanding exports. Enabling business. Serbian enterprise, financial means, and skilled labour amount to little without the right environment to do business. A government approach of not only permitting but truly enabling business is essential. Changes to improve the overall business environment would find favour with any good-governance advocate: improved transparency of administrative procedures, simplification of overly complex laws, improving governance and curbing corruption. But comprehensive execution has so far been elusive. Progress in this sphere could add 0.9% to GDP annually. Reducing and reforming state aid would bring significant benefits, but requires hard choices, notably redirecting a large share of support from unproductive state-owned enterprises to productive investment. Along with maintaining macroeconomic stability, this policy agenda would constitute a declaration that Serbia intends to seize the oppor-

Reducing and reforming state aid would bring significant benefits, but requires hard choices, notably redirecting a large share of support from unproductive state-owned enterprises to productive investment services, an important component of Serbia’s success, grew from 30% of GDP in 2006 to over 50% of GDP in 2018. Over the same period, Serbian ingenuity and favourable policies have driven explosive annual growth rates in two service exports – 27% in computing and over 11% in professional services. But these two sectors account for a small share of the economy. For total exports to reach 80 per cent of GDP, which is the level of similar small transition economies that have already joined the EU, Serbia needs policies that upgrade export-supporting services (e.g., better transport, warehousing and brokerage services, especially for domestic firms), and to improve the operating environment for exporters

tunity it has created. None of this will come easy. In 2019, the global environment deteriorated; while leading indicators suggest a further slowdown in global growth and trade in the near term. But Serbia can safeguard its hard-won macroeconomic stability and take its economic transformation to the next level. Reforms will at once promote growth and build needed resilience for the coming period and beyond. But this goal will elude Serbia if it does not construct a better foundation for faster growth. The challenge is not only economic. It requires courageous, decisive and bold political commitment, as well as strengthening government effectiveness and accountability. ■ This article was edited by CorD

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Leaders’

MIROSLAV VRANEŠ, DELL SERBIA

IT Drives Initiative PAGE /28

MEETING POINT

SANJA JOVANOVIĆ, WIENER STÄDTISCHE OSIGURANJE

ALEKSANDAR MIŠKOVIĆ, PRECISE CASTING PLANT – LPO

A Cure Exists For Cyber Attacks

Always In The We’re Expanding Our Service Of Patients Capacities

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NEBOJŠA ŠKULJEC, MERCK SHARP & DOHME

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ASW INŽENJERING (ENGINEERING)

MARTINA SEFEROVIĆ, OIP – OUTSOURCE INSURANCE PROFESSIONALS

Innovations Pave The Road Outsource And To The Future Outsmart PAGE /36

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MIROSLAV VRANEŠ, DELL SERBIA

IT Drives Initiative Dell Technologies, as a world market leader in technology, helps to accelerate human progress. On the one hand, it boasts a wide portfolio of products in the field of infrastructure platforms rounded off in one complete whole, while on the other hand cooperating with the largest system integrators in the region

he purpose of IT is to manage and drive change through constant improvements and advancements. Our future is doing business according to the principle “online everything” and “work from anywhere”, from buying groceries through online applications, via virtual business meetings, to gatherings or education. Dell is committed to building our digital future. What kind of future is that? We live in a time of digital reality, using technologies in all industries and all spheres of life. Some technologies are so broadly accepted that we sometimes wonder how we used to live without them or whether we

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could live normally without using them. We at Dell Technologies strive, on the one hand, to accelerate and improve social development with technology, overcome certain challenges and improve the quality of life, while on the other hand we act responsibly towards the environment, respecting all prescribed norms (for example GDPR procedures on personal data protection) and taking into account the preservation of the natural environment – green IT. Digitalisation is a process that’s present in all branches of industry, but some of them accept innovations faster than others, due to the nature of their operations. One of the current focuses of our company is the development and application of virtual reality and artificial intelligence in order to modernise and discover new areas of activity in all industrial sectors. I would single out the strengthened application of technologies in energy, in the form of turning towards renewable energy sources, in medicine, for which we provide opportunities for accurate diagnosis and focusing on the individual patient, and in agriculture, in the form of improving quality and increasing the volume of food items that we live from. To what extent does the modernisation of IT infrastructure create new opportunities for business and how does it impact on the value of companies? The modernisation of the complete IT environment, which includes infrastructure itself, is a continuous process given the speed of development of new technologies and the needs of users for them. The es-

sence is in quickly accepting and adapting one’s own business to market challenges and new user requirements. Every environment offers certain opportunities for business, and success depends mostly on ourselves and our ability to recognise those opportunities. We live in a time of digital reality, where the basis of every business is represented by a robust, stable, modern and efficient IT system. IT is a driver of initiatives and a creator of new business opportunities.

One who possesses more developed technology has a great advantage over the competition

In the environment of Covid-19, we have witnessed the power to business of “online everything” and “work from anywhere”, from buying groceries through various online applications, to virtual business meetings, user gatherings or education. Companies that were able to quickly accept current changes and adapt to the new environment certainly fared much better. The speed of adapting to new challenges also influences the actual value of a company. How do your end solutions help clients to drive innovation and realise their business goals?

Our job is to modernise the complete IT environment, which then represents a stable basis and a springboard towards the further development of companies and the realisation of new business solutions, applications or services. Our customers are simultaneously our partners, because their path to success depends on the quality of our products and services. Our idea is to be a trusted technology advisor to our customers, so that they can focus on their own business. Your IT is our job. The technologies that you create drive human progress. What will our lives look like when transformed by technology? Will we have more solutions available for the challenges we face? Man was created for technology, just as technology was created for man. The speed at which technology is evolving and technological solutions are being accepted is incredible. Just compare the way of thinking or expectations and the use of technology of a child aged 10 or 15 with a mature person of 35 or 45, and then compare all of that with our parents. The greatest beauty of working with technologies is the constant development and implementation of new ideas, the improvement of existing solutions and visions for the future. Human progress is only possible with the intelligent management of technological innovations. The boundaries of reality are constantly shifting and opening the door to new possibilities. And I think we’ve only just started the new technological revolution and that the final achievements are not even in sight. With the applying of new solutions or innovations, we also open the door to new challenges, which is why responsibility plays a big role. We often also encounter situations where newly developed possibilities are neither legally foreseen nor regulated, and an example of that are the global challenges and reactions of certain countries regarding Uber or CarGo. While we’re on that subject, what are the most dominant challenges of the moment in which we live, in your opinion? Are there

big differences between local and global challenges? The biggest global and local challenge at present is the fight against the Covid-19 pandemic, which has not previously been recorded in human history. That is also a good example to look at the completely different reactions of individuals, organisations, and even entire countries, to an identical challenge. The IT industry was among the first

It is certain that a time is coming when it will be possible to do most jobs from remote locations

to start the process of adapting to the newly emerged situation and offered solutions for overcoming certain challenges. However, a question arises as to whether this is a unique phenomenon or whether we can expect similar phenomena in the future. How can we recover from the current situation and how can we prepare for the next one? Do such natural threats represent our new reality?

Man is an individual that best adapts to the given circumstances, and at the moment we are all dealing with complete recovery – in health, economics and socially – and we will certainly emerge as winners. It seems to us that the IT sector has traversed these few difficult months the most painlessly. Is that true? Have you drawn from that any new guidelines for the period ahead?

Although we hope that the most difficult period is behind us, I think it is too early to talk about possible consequences. We quickly adapted to the situation and switched to a digital and online business model. We are currently in the so-called digital transformation of business. As such, it is natural that IT is one of the best prepared branches for every kind of change. Changes are part of our daily environment and business. The role of IT in this pandemic is to facilitate and normalise the operations of all branches of industry, as evidenced by the speed at which digital classrooms have been implemented, as well as a large number of government services, to further help in the recovery of the economy and, most importantly, to help medicine respond to the health challenge in an adequate way.

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“We made the right decision by choosing Serbia, especially Čačak, which has an excellent location. In less than an hour we arrive here from the airport.” – JURGEN MOLLER, VORWERK ELDISY CEO

LOCAL NEWS MPC PROPERTIES

UŠĆE TWO TOWER OFFICIALLY OPENED

STARTUP GENOME

STARTUP ECOSYSTEM OF BELGRADE AND NOVI SAD WORTH 502 MILLION DOLLARS The American organisation Start-up Genome has published a new edition of its annual report, which estimates that the startup ecosystem of Belgrade and Novi Sad is worth about 502 million dollars. According to the report, Serbia is positioned in the top five countries by the number of blockchain developers in the world. This year’s Genome survey included nearly 300 startup ecosystems around the world, making it the most comprehensive to date. The new research gives a much more realistic picture of where Serbian entrepreneurial scene is in the world. The report is available to the public via www. startupgenome.com, and it shows that for the second time that Belgrade and Novi Sad ecosystem is the only one in the Western Balkans.

UŠĆE Tower Two, a business centre of A + class, which represents a new investment of MPC Properties, the largest domestic real estate development company in the region, was officially opened. UŠĆE Tower Two has 22 floors and an area for rent of 23,200 m2, and the total value of the investment is 65 million euros. Located in the heart of Belgrade, at the confluence of the Sava and Danube rivers, UŠĆE Tower Two is characterised by excellent connection with all parts of the city. It is the only “breathable building”, with a decentralised natural ventilation system integrated into the facade, which is a novelty on the domestic market, and which allows the supply of fresh air throughout the space.

ECONOMIC DOWNTURNS

WHY A RECESSION CAN BE A GOOD TIME TO START A BUSINESS What do General Motors, Burger King, CNN, Uber and Airbnb all have in common? They were all founded during economic downturns. GM launched in 1908, when the U.S. economy was in turmoil after “the Panic of 1907”, Burger King flipped its first patty in 1953, when the U.S. was again in a recession, and CNN started its news broadcasts in 1980, when U.S. inflation hit almost 15%. Both Uber and Airbnb set up business during the global financial crisis of 2007-09. These examples all show that many of the best and most enduring companies are set up during downturns.

NIKOLA TESLA AIRPORT

MODERNISATION OF BELGRADE NIKOLA TESLA AIRPORT CONTINUES Belgrade Nikola Tesla Airports’ modernisation works have been ongoing without major disruptions, even during the state of emergency. Together with construction partner, VINCI Terna Construction JV and their subcontractors, Belgrade airport has developed a specific plan to mitigate the impacts of the pandemic on the works dynamic and projected deadlines. ‘’We expect the major works to be executed over

NELT GROUP

PRESENTS NEW SUSTAINABILITY REPORT The Nelt Group presented its 2018/19 Sustainability Report, highlighting that business sustainability is one of the key strategic objectives of the company, which has maintained continuous organic growth for nearly 30 years. In addition to business diversity, new technologies and employee affirmation, the company is focused on the areas and projects that will have a long-term positive impact on both the organisation and the community. In the last two years, Nelt invested 15 million euros in developing smart warehouses and office space in Belgrade and Eastern Sarajevo, expanded the Intermodal Terminal in Belgrade and its fleet in accordance with the latest eco-standards, and focused on the importance of recycling. In all the markets where it operates, the Nelt Group strives to raise environmental awareness and reduce the negative impact of pollution and global warming.

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the next three years. Thanks to the planned capacity upgrades the airport, which last year served around 6,2 million passengers, will be able to handle projected 15 million passengers at the end of the concession period. Our aim is to significantly improve the level of service, comfort and variety of commercial offers at Belgrade’s Nikola Tesla Airport.’’, stated Francois Berisot, CEO Belgrade Airport.

SANJA JOVANOVIĆ, DIRECTOR OF THE CORPORATE INSURANCE SECTOR AT WIENER STÄDTISCHE OSIGURANJE

A Cure Exists For Cyber Attacks Many companies will increasingly choose work from home in the future, which will increase the risk of cyber intrusions into corporate systems, thus increasing the need for protection. Insurance company Wiener Städtische osiguranje offers cyber risk coverage by advocating for stable and professional protection against possible financial problems for its clients

xpectations are that the cyber risk insurance market will grow to $23 billion over the next five years and that interest in it will be ever increasing. One of the reasons for that is the fact that, once purchased, a cyber risk insurance policy will cover numerous costs. The Covid-19 virus pandemic has brought us many changes, some of which concern your sector, the insurance sector. Can you tell us more about that? Throughout the duration of the Covid-19 virus pandemic, many companies switched to working from home, which increased the risk of cybercriminals breaking into corporate systems and stealing business data. We were this time relying on our curiosity and interest in “miracle medicines” against viruses or deficient products, and this generally happens to a greater or lesser extent constantly, even without a pandemic. It is certain that opening infected links or attachments enables access to company data, or the theft, misuse or alteration of data, so the increase of such attacks has led to the start of the more significant development of insurance coverage for new forms of danger. Intrusions into a corporate system can cause immeasurable damage. What does

the insurance policy cover in the case of a cyber attack? In these cases, a cyber risk insurance policy will provide coverage by reimbursing the costs of hiring the services of IT experts. These costs mainly relate to determining the extent of damage in terms of the type and number of endangered or lost data, its limitation and the recovery of data, the removal of malware, viruses and the like. However, the most dangerous thing for a company is the endangering of the personal data of third parties in any way. Here the

It is extremely important that a cyber risk insurance policy covers the direct financial consequences of a cyber incident

cyber insurance policy provides coverage for the costs of hiring legal advisors and crisis situation advisors, the costs of informing people whose data has been endangered, as well as other costs incurred with the aim of preserving a company’s reputation. It is actually damage to reputation that costs many companies the most, especially when there is a loss of loss of

third-party data including names, payment card numbers, health data etc. This leads to a loss of trust among their customers, and often raises the issue of managerial responsibility - from that of the CEO to the IT experts who run the company. In which way can a company’s management protect itself from lawsuits? Is there a liability insurance policy? It is often the case that so-called financial lines of insurance activate one another, and the cyber insurance and liability insurance of directors are precisely from these lines, while there are numerous examples of them being conditioned. However, the costs of defending against possible lawsuits launched by an owner of capital against management, as well as compensation for damages in the case that the responsibility of management is proven, are covered by the liability insurance policy of the director. A cyber risk insurance policy will cover the direct financial consequences of a cyber incident. Apart form the costs of engaging IT experts, loss of third party data and mounting a defence in the case of lawsuits, a purchased cyber risk insurance policy includes coverage for so-called multimedia liability, with monetary fines imposed on the basis of misdemeanour orders issued by an authorised state body and managing crisis situations, as well as the costs of informing users and customer support costs.

July

ALEKSANDAR MIŠKOVIĆ, GENERAL MANAGER, PRECISE CASTING PLANT – LPO (LIVNICA PRECIZNIH ODLIVAKA)

We’re Expanding Our Capacities Livnica preciznih odlivaka – LPO, Precise Casting Plant, has a tradition in the production of parts for the aviation industry dating back more than four decades. Thanks to the support of parent company Bet Shemesh Engines Ltd. from Israel, today the world’s leading manufacturers of engines and components for turbojet engines are supplied from the company’s production facilities in the Serbian town of Ada

otal investments exceeded the amount of 12 million U.S. dollars and our company almost tripled its sales. The vision we all share in the group will make us a very important player in the international market, not only castings, but also machine processed parts, announces LPO General Manager Aleksandar Mišković.

Precise Casting Plant – LPO is focused entirely on the international market and renowned manufacturers of engines and components for turbojet engines. How do you enter such circles? How are such markets conquered? LPO has a multi-decade tradition of producing parts for the aviation industry, more precisely for turbojet engines, but return to the market you mention followed a break during the ‘90s. Entering the club of suppliers of the world’s leading companies, such as MTU, PWA, PWC, Rolls-Royce, Collins Aerospace, is possible only with maximum efforts exerted on employee training, the careful selection of staff, constant learning, smart investment and long-term planning. The only way to conquer a market is through constant quality, stable deliveries, open and honest communication with customers and respecting the strict requirements of the quality system. I would especially like to emphasise the work with

July

employees, their selection and development, but also the need for top management to take a very strict stance that it is only possible to remain in our team if a staff member adopts all the rules of work and behaviour required by the company. LPO has managed to secure its place in the aviation industry market, which is an exclusive club that’s very difficult to enter but extremely easy to be rejected from, and the only guarantee of survival are results that every customer will recognise and respect.

Our relationship with the Faculty of Technical Sciences in Novi Sad shows what close and successful cooperation between a college and the economy looks like

Would the new plant and capacity expansion have come without the support of Israeli parent company Bet Shemesh Engines Ltd.? LPO has of course succeeded thanks to the maximum support that we’ve received throughout all these years from our parent company Bet Shemesh Engines Ltd. from Israel. This certainly also relates to financial support, but support in conquering new products and processes is much more important.

This has been particularly important in the last three or four years, after the group launched an ambitious investment cycle, with an emphasis on investing in LPO. The latest investment is confirmation of this claim, as our machining hall has been expanded by an additional 2,000m2. I would like to take this opportunity to thank, on behalf of our team, the management of the group, who really treat the company in Serbia with special care and respect. Your work requires continuous investments in modern technologies and tools, but also in personnel. Are the certificates you possess, which open many doors worldwide, the result of those investments? Certificates are essential if you want to get involved in the market battle, and they are indeed the result of investing in material things, but first and foremost they are the result of investing in personnel. LPO is currently working on a human resources strategy, but some ideas have already been implemented. We’ve already signed several contracts with young engineers, who are able to resolve their own housing issues through a contract with our company, and to do so without going to a bank, without down-payments, without interest and without a mortgage. The model is interesting and attractive to young people. Apart from that, every year we send our engineers and inspectors for training both in the country and abroad, which makes it clear to them that LPO is a company that cares about its employees, their development and training.

July

“Adria Tour meant to unite and share a message of solidarity and compassion throughout the region. Everything we did was with a pure heart and sincere intentions” – NOVAK ĐOKOVIĆ, TENNIS PLAYER

REGIONAL NEWS CROATIA

CROATIA’S PLAN TO INTRODUCE SHORTER WORKWEEK

BULGARIA

BULGARIA’S VARNA PUBLIC TRANSPORT OPENS 34.8 MLN EURO TENDER FOR NEW E-BUSES

Croatia has adopted measures to shorten the workweek, and the state would co-finance one working day, up to 4,000 kunas per worker, according to portal Poslovni.hr. The measure currently only applies to the processing industry, and is planned to take effect in June and last until the end of this year. Assistance will be provided to employers who apply for part-time work for at least 10 and at most 50 per cent of workers for whom they cannot provide full-time work. The employer must keep the workers to whom the measure was approved for as many months as he used that measure, and is not allowed to pay dividends or bonuses to managers until the end of 2021.

Bulgarian company Public Transport - Varna launched a tender for contracts for the delivery of a total of 60 new electric buses and charging stations, worth an estimated total of 68 million levs ($39.1 million/34.8 million euro). The larger contract, worth an estimated 38.8 million levs, envisages the supply of 40 single electric buses and charging stations for them, the public transport company servicing the city of Varna said in a tender notice. The second deal, priced at 29.2 million levs, provides for the supply of 20 articulated electric buses and 20 charging stations. Offers can be submitted until 20 July.

SLOVENIA

SLOVENIA’S PIPISTREL OBTAINS FIRST EVER EASA CERTIFICATE FOR ELECTRIC AIRPLANE Slovenian light aircraft manufacturer Pipistrel announced that its Velis Electro two-seater has become the world’s first fully electric airplane to receive certification by the European Aviation Safety Agency (EASA). “The type certification of the Pipistrel Velis Electro is the first step towards the commercial use of electric aircraft, which is needed to make emissionfree aviation feasible,” Pipistrel’s CEO Ivo Boscarol said in a company statement. Battery-powered Velis Electro is intended primarily for pilot training, and was designed to be simple to operate and maintain, the statement read. Pipistrel has been working on the research and development of electric aircraft models since 2007.

MONTENEGRO

MONTENEGRO SIGNS HELICOPTER DELIVERY DEAL WITH CANADA’S CCC Montenegro’s defence ministry has signed a 3.3 million euro ($3.7 million) agreement with Canadian Commercial Corporation (CCC) for the delivery of two Bell 505 Jet Ranger X helicopters. CCC will deliver the first helicopter in July and the second at the beginning of 2021, the defence ministry said in a statement last week. Under the terms of the agreement, CCC will provide training in France for three pilots from Montenegro, as well as for eight technicians at the Bell Training Academy, in Fort Worth, Texas. Montenegro received in 2018 two Bell 412 EPI helicopters under a 30 million euro agreement with CCC.

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As a result of all innovations implemented in the construction of Velis Electro, its operating costs have been drastically reduced, thus contributing to the affordability of pilot training. Pipistrel will deliver the first 31 Velis Electro planes to customers in seven different countries by the end of 2020, it said.

NEBOJŠA ŠKULJEC, DIRECTOR, MERCK SHARP & DOHME

Always In The Service Of Patients Merck Sharp & Dohme will continue to serve patients and the health system in Serbia, and the key to realising success will be regular communication and exchanges of information with state institutions, health policymakers, health workers and patients

e will invest significant resources in the discovery, development, production and global distribution of the Covid-19 vaccine, in order for it to be available to the population around the world as soon as possible, and we will develop an antiviral drug for severe coronavirus forms, in cooperation with Ridgeback Biotherapeutics LP, announces Merck Sharp & Dohme Director Nebojša Škuljec, speaking in this interview for CorD. The new Coronavirus pandemic is continuing and keeping the world in a state of emergency. Is this a challenge for pharmaceutical companies like yours? The appearance of Covid-19 has had a major impact on the whole world and I think that the health and pharmaceutical sector will no longer be the same after the end of the pandemic. Globally, our company responded quickly by increasing its production of medicines, and we in Serbia have ensured that sufficient quantities of all medicines are available to patients infected with Covid-19, as well as to those needing therapy for chronic diseases. In addition to this, in accordance with our long tradition of corporate social responsibility in Serbia, we have responded with other forms of assistance worth 100,000 euros.

Serbia has long since lagged behind Europe when it comes to the introduction of innovative therapies. Is that situation slowly improving? In terms of the availability of innovative therapies, Serbia lagged behind significantly in the period from 2012 to 2016. The National Health Insurance Fund and the Ministry of Health have exerted significant efforts in the last few years

MSD Serbia remains committed to its goal of preserving and improving human health, both globally and in our country

in order to achieve improvement in this segment, given the unequivocal value of modern therapies, in terms of ensuring a longer, healthier and more productive life for patients, as well as in terms of reducing the number of hospitalisations, complications and co-morbidities. At the end of 2019, the Ministry of Finance approved an additional investment worth five billion dinars, which resulted in the introduction of modern therapies, as early as the beginning of this year, for the treatment of lung cancer, among other things.

What is the future of the pharmaceutical industry? Biological medicines; personalised therapies? The focus of the pharmaceutical industry has shifted from medicines to the patient, which we can certainly call personalised medicine. At MSD Serbia we imply that this means that every patient should have the opportunity to get the right therapy at the right time, which will provide the best treatment outcomes and/or the prevention of later illness. MSD was the first company to come up with the immunotherapy that revolutionised the treatment of advanced malignant diseases. For now it is used in the treatment of malignant melanomas and lung cancer, and it is already available around the world or is being tested for a larger number of types of cancer. We hope that, with the widespread use of immunotherapy as a new standard of treatment in oncology, cancers will increasingly become chronic and not fatal diseases. With what plans and ambitions are you awaiting the year ahead, during which you will mark a quarter of a century of your business in Serbia? The time ahead of us will bring a lot of new challenges. We believe that greater investment in prevention and treatment will have a positive impact on all infectious diseases that represent a threat to the sustainability of health systems and society as a whole. And here too we have much more to offer, from vaccines to prevent infections caused by HPV, through the latest antibiotics, to effective therapies for HIV infections and hepatitis.

July

ASW INŽENJERING (ENGINEERING)

Innovations Pave The Road To The Future

ASW Inženjering/Engineering combines the impossible – conserving technologies that are the backbone of a reliable business information system and the latest advances in computer science, such as machine learning and artificial intelligence

SW Software is said to be one of the leading domestic IT companies for business information systems that have always endeavoured to incorporate innovation into software. With the development of the latest trend in the architecture of business systems, which we recognise under the term Industry 4.0, ASW has incorporated a number of innovations into its solutions. To name a few: the cloud, machine learning and cyber security which are integral concepts of ERP. This level of implementation of the latest cutting edge technologies happened gradually, through constant development, and – as they insist at ASW – certainly hasn’t reached its final form, but is rather on a non ending development path. The company’s motto is: “Innovation, innovation, innovation”.

July

The current pandemic has brought numerous challenges to companies and producers of business software. One of them is intensive work from home. Is ERP in the cloud one of the best solutions? At ASW we say that inevitability of being distanced from each other during the pandemic makes working from home an adequate response of a successful business system. ERP and all other business software that can run in the cloud are optimized to naturally adapt to situations like these. CLEAR VIEW OF THE FUTURE ASW Inženjering has long been dedicated to incorporating machine learning and AI technologies into business optimisation software. Users today can already enjoy the benefits of these technologies. A laboratory for machine learning was established three

years ago. Experts have been brought in from the Faculty of Natural Sciences and Mathematics, they work very intensively and have already achieved significant results with users in optimising their business processes. Standing out is the system for price optimisation in campaigns with traffic predictions, price differences and optimal prices proposed by the system itself. More precisely, the system used analysis of a large number of sales over a long period of time to “learn” to make presumptions of events for various situations and to find the optimal one. Another field where machine learning and artificial intelligence are yielding better results than traditional technologies is in so-called personalized sales, which groups customers according to shopping habits and suggests items that a customer has not bought, but that others who behave similarly have. There is also a system for routing and scheduling optimisation in warehouses. The system is adaptable and automatically adjusts to new trends, which raises the level of process optimisation based on the processing of large amounts of data. Without these technologies, similar results could only be achieved by employing significant human resources. This subsystem was named asw:maximus, precisely because it maximises performance and minimises resources. Continuation of development and operations is certainly accelerating to unimaginable limits. Without machines and their ability to “crack numbers” faster than humans, we would not be able to keep the pace. Some of our products are already widely present on the international market and are applicable in all business processes of our clients, or partners, as we like to say. We believe that the local or regional market will adopt the trend that’s present among our partners in the EU in order to make better and smarter business decisions. We are ready for such a future and look forward to sharing it with you.

MARTINA SEFEROVIĆ, MANAGING DIRECTOR, OIP – OUTSOURCE INSURANCE PROFESSIONALS

Outsource And Outsmart The economic power of the American market, coupled with Serbia’s growth potential and human capital capabilities, created a fertile ground for OIP to bloom

IP is a U.S. Company with a Serbian heart, with people as the driving force behind its innovations, explains OIP Managing Director Martina Seferović, speaking to CorD.

OIP is an American company headquartered in Arizona which has had a production centre in Serbia since 2012. Starting with just three employees and having expanded to several hundred today, you have been here since day one. What did the last eight years look like? Back in 2012 I was one of the first employees of Outsource Insurance Professionals, sitting in a small Belgrade office, learning insurance in order to understand administrative support for U.S. companies. Today we do Insurance back office services and provide InsurTech innovations on three continents, have over 100 clients and hundreds of employees. We established our place as a pioneer and distinguished leader. Over the years we have been awarded numerous times in both Serbia and the U.S.: Bronze Gazelle Statue recognising us as being among the fastest growing companies in Serbia, with a high employment rate and constant growth; our President and I have both been on the Hot 100 Insurance Business America list; our Finance and Compliance Director is a member of Forbes Finance Council

in the U.S.; and our Operations Director was voted Serbia’s Best Development Manager. Exponential growth over the past eight years brought an incredible journey with a lot of challenges, but even more rewarding moments. OIP has two main objectives happy clients and happy employees, which we’ve managed to achieve with constant client, employee and revenue growth of over 50% annually. What does it feel like to manage a company that grows and develops this quickly? I suppose that the secret is in having a great team, but also a good strategy and managers. My role is twofold: managing a team of young leaders while simultaneously

OIP has two main objectives - happy clients and happy employees, which we’ve managed to achieve with constant client, employee and revenue growth of over 50% annually

being committed to the company’s prosperity and quality work output, preserving the OIP mission and values. We promote from within, with a continuous focus on education. Deciding on a strategy, setting the groundwork, implementing and continuously adapting to internal and external changes are musts in today’s competitive marketplace. For any

organisation to reach the top, change management is vital. Not only ensuring changes are executed properly, but also investing in powerful teams and winning strategies. The biggest and continuous challenge is leveraging between productivity, quality and employee satisfaction. People are the heart and driving force behind any company, which is why we are always finding new ways to maintain employee satisfaction and engagement. Our efforts are also directed to CSR, contributing to our community. You are perceived as an initiator of new projects and the company’s further development, including its expansion to new markets. What are your future plans? Launching new services? Conquering new industries, such as IT? The possibilities are endless... The insurance industry is very specific, and does not allow for ‘off the shelf’ solutions, so we continuously introduce new and customised services. Our future plans include further expansion to the London market and the Artificial Intelligence sphere, where we achieve the unbeatable synergy of technology and knowledge in the digital transformation of insurance. A year ago we launched our own tech start-up - OIP Robotics. The secret to its success in such a short time is empowering employees to release their creative potential. The human imagination is limitless, and when paired with technology it works miracles. Our customers need a professional and trustworthy partner that knows the Insurance Speciality industry by heart and our staff need an employer who keeps promises and creates opportunities. As long as we feed both, we will continue to prosper. It’s very simple. And exciting!

July

“We need to talk about racism and we need to act. We will get to the bottom of many difficult questions. We want to build a Europe that is more equal, humane and fair.” – URSULA VON DER LEYEN, PRESIDENT OF THE EUROPEAN COMMISSION

WORLD NEWS UNITED KINGDOM

UK TO START POST-BREXIT TRADE TALKS WITH JAPAN

EUROPEAN UNION

The UK and Japan are set to begin talks on aimed at reaching agreement on a post-Brexit trade deal. The negotiations come as London and Tokyo work towards replacing the agreement Britain currently has with Japan through the European Union. Without a new deal by 1 January 2021, the two countries will default to World Trade Organization trading terms. That would mean tariffs and obstacles to commerce between the UK and its fourth-largest non-EU trading partner. After decades of sharing its trade policy with the European Union, Britain is now embarking on free trade negotiations with countries around the world.

EU TO CURB FOREIGN STATE-BACKED ACQUISITIONS The European Commission (EC) on Wednesday opened a public consultation to help prepare legislation intended to tighten its regulatory mechanisms that prevent foreign state-backed rivals from taking over European businesses. The EC will accept stakeholders’ submissions on its White Paper on Foreign Subsidies until 23 September, it said in a statement. Under one set of proposals, the EC will identify gaps in regulations which may allow foreign states to finance acquisitions of ownership or stakes in European companies by non-EU rivals. Businesses backed by non-EU states will need to notify the EU competition regulator when they acquire an interest in any local company above a given threshold. The EC could either demand concessions or block a potential transaction outright. The measures seek to prevent third-party states from conferring “an unfair benefit” on commercial entities in potential deals by providing funding for acquisitions or linking the deals to future subsidies. UNITED STATES

NIKE REVENUES DROP NEARLY 40% AMID COVID-19 LOCKDOWN Nike revenues plummeted by almost 40 per cent in the fourth quarter as a result of store closures amid the COVID-19 pandemic, the USbased sportswear company said in a financial report. Nike’s net loss for the quarter totalled $790 million, the report added, while gross margins shrank due to higher operating expenses driven by cancellations, inventory obsolescence, and adverse effects of fixed supply chain costs. For the fiscal year, Nike’s Greater China revenues increased eight per cent - the segment’s sixth consecutive year of double-digit growth despite headwinds from COVID-19 in the second half of the year. Selling and administrative expenses decreased 6 per cent to $3.2 billion, which included an incremental $178 million increase in bad debt expense, the company added.

July

“The danger posed by the coronavirus remains serious. It’s easy to forget because Germany has been doing reasonably well through the crisis so far, but that doesn’t mean that the danger has been averted.” – ANGELA MERKEL, GERMAN CHANCELLOR

GERMANY

BAYER TO PAY OVER $10 BILLION TO SETTLE LAWSUITS OVER MONSANTO’S WEEDKILLER German pharma giant Bayer said it would pay up to $10.9 billion to settle a raft of lawsuits against its US affiliate Monsanto’s weedkiller Roundup, accused of causing cancer. Bayer bought Monsanto, a herbicide and genetically modified seed producer, in 2018, three years after the first lawsuits were filed. The German company said $8.8 billion to $9.6 billion would be paid to settle 75 per cent of some 125,000 filed and unfiled claims, with the rest going to support a separate class agreement to address potential future litigation. Bayer stressed that the settlement does not equal admission of liability or wrongdoing and maintains that the glyphosate-based weedkiller has been scientifically proven to be safe. JAPAN

JAPAN’S SUPERCOMPUTER NAMED FASTEST IN WORLD

GREECE

GREECE BOOSTS CONSTRUCTION SECTOR THROUGH OPTIONAL VAT SUSPENSION SCHEME

The Fugaku supercomputer topped the world rankings at once for the first time in history. It has been put to work creating models to fight the coronavirus pandemic, but its designers now have bigger plans for it. The Fugaku supercomputer, developed by Japan’s Riken scientific research centre and firm Fujitsu, is 2.8 times faster than the US-developed Summit supercomputer that is now in second place in the Top500 supercomputer rankings. Japan’s computer also topped the HPCG, HPL-AI and Graph500 listings, “for the first time in history as a single machine simultaneously,” tweeted Riken director Satoshi Matsuoka. All supercomputers run over 1000 times faster than a normal computer. Fugaku, which means Mount Fuji in Japanese, is expected to start full-time operation from April 2021, after six years of development.

The Greek Government has recently introduced an optional VAT suspension scheme to boost the attractiveness of the huge stock of unsold properties as well as to provide impetus to construction activity generally. Under this scheme, between 12 December 2019 and 31 December 2022, the transfer of a newly built property (as described above) is exempted from VAT. Constructors that wish to opt for this scheme must apply within six months from the date of the issue of the building permit. For building permits issued before the entry into force of the suspension scheme (i.e. before 12 December 2019), the application deadline was 12 June 2020. In case the constructor opts for the VAT suspension scheme, the property transfer tax at a rate of 3% (plus 3% municipality tax on the amount of the transfer tax) is applicable and payable by the buyer. The strategy of the Greek Government to enhance the real estate, as well as other related sectors, is illustrated through several tax initiatives, including the above-mentioned optional VAT suspension scheme, the reduced Corporate Income Tax rate of 24%, the reduced withholding tax rate on dividends of 5%, and the three-year suspension of the capital gains tax (15%) applicable on individuals in case of the property sale transaction.

July

Enterpreneur

ELON MUSK

TESLA AND SPACEX CEO

The God

Of Tech

Elon Musk was born on 28 June 1971, in Pretoria, South Africa. Musk’s mother, Maye, is a professional dietitian and model. She has appeared on boxes of Special K cereal and the cover of Time magazine. In 2017, at the age of 69, she landed a contract with CoverGirl. After their parents divorced in 1979, the 9-year-old Musk and his younger brother, Kimbal, decided to live with their father. It wasn’t until after the move was made that his notoriously troubled relationship with his dad began to emerge. “It was not a good idea,” Musk said in a Rolling Stone interview about moving in with his father. At the age of 12, Musk sold a simple game called “Blastar” to a computer magazine for $500. He described it as “trivial game, but better than Flappy Bird.” Still, Musk’s school days weren’t easy. He was once hospitalized after being beaten by bullies. The bullies threw Musk down a set of stairs and beat him until he blacked out. After graduating from high school, Musk moved to Canada with his mother Maye, his sister Tosca, and his brother Kimbal, and spent two years studying at Queen’s University in Kingston, Ontario. He finished his studies at the University of Pennsylvania, earning degrees in physics and economics. While studying at the University of Pennsylvania, Musk and a classmate Adeo Ressi rented out a 10-bedroom frat house and turned it into a nightclub. The move, was one of his first entrepreneurial experiments. After graduation, Musk travelled to Stanford University to study for his PhD — but he barely started the program before leaving it. He deferred his admission after only two days in California, deciding to test his luck in the dot-com boom that was just getting underway. He never returned to finish his studies at Stanford. With his brother, Kimbal, Musk launched Zip2. A cluster of Silicon Valley investors helped to fund the company, which provided city travel

Musk seems to be everywhere all at once pushing all kinds of futuristic technologies, as CEO of SpaceX and Tesla, founder of The Boring Company, and cofounder of OpenAI and Neuralink. Today, Musk is among the 25 wealthiest people in the world, with a net worth valued at more than $37 billion 40

July

guides to newspapers like The New York Times and Chicago Tribune. While Zip2 got off the ground, Musk lived in the office and showered at a local YMCA. The hard work paid off when Compaq bought Zip2 in a deal worth $341 million in cash and stock, earning Musk $22 million. Musk next started X.com, an online banking company. He launched the company in 1999 using $10 million of the money he got from the Zip2 sale. About a year later, X.com merged with Confinity, a financial startup co-founded by Peter Thiel, to form PayPal. Musk was named the CEO of the newly minted PayPal. However, it didn’t last long. In October 2000, he started a huge fight among the PayPal cofounders by pushing for them to move its servers from the free Unix operating system to Microsoft Windows. PayPal co-founder and then CTO Max Levchin pushed back, hard. While Musk was en route to Australia for a much-needed vacation, PayPal’s board fired him and made Thiel the new CEO. “That’s the problem with vacations,” Musk told Fortune years later about his ill-fated trip in late 2000. But things worked out for Musk — he made another windfall when eBay bought PayPal in late 2002. As PayPal’s single biggest shareholder, he netted $165 million of the $1.5 billion price eBay paid. Even before the PayPal sale, Musk was dreaming up his next move, including a wild plan to send mice or plants to Mars. In early 2002, Musk founded the company that would be known as Space Exploration Technologies, or SpaceX, with $100 million of the money received from the PayPal sale. Musk’s goal was to make spaceflight cheaper by a factor of 10. Another early vehicle was named after the song “Puff the Magic Dragon.” The name of the spacecraft, the Dragon, was Musk’s jab at sceptics who told him SpaceX would never be able to put vehicles into space. SpaceX’s long-term goal is to make colonizing Mars affordable. Musk has said that SpaceX won’t file for an initial public offering until what Musk calls the “Mars Colonial Transporter” is regularly flying. Musk has also been keeping plenty busy here on Earth, particularly with Tesla Motors. In 2004, Musk made the first of what would be $70

million of total investments in Tesla; an electric car company co-founded by veteran startup exec Martin Eberhard. Musk took an active product role at Tesla, helping develop its first car, the Roadster. The all-electric Roadster debuted in 2006 when Musk was serving as Tesla’s chairman. He’s now also its CEO. As if that wasn’t enough, Musk came up with the idea for SolarCity, a solar energy company. Musk gave his cousins Peter and Lyndon Rive the working capital to get SolarCity off the ground in 2006. (In late 2016, Tesla bought SolarCity in a $2.6 billion deal.)

from bankruptcy. Musk invested $40 million in Tesla and loaned the company $40 million more. Not coincidentally, he was named the company’s CEO the same year. But between SpaceX, Tesla, and SolarCity, Musk nearly went broke. He describes 2008 as “the worst year of my life.” Tesla kept losing money, and SpaceX was having trouble launching its Falcon 1 rocket. By 2009, Musk was living off personal loans just to survive. Musk’s personal life was in upheaval too: Musk and his wife Justine, a Canadian author, got divorced in 2008. The couple got married in 2000 — their first son, Nevada, died of SIDS at

ELON MUSK PRESENTING TESLA ROADSTER

At the age of 12, Musk sold a simple game called “Blastar” to a computer magazine for $500 In 2007, Musk staged a boardroom coup at Tesla, first ousting Eberhard from his CEO seat and then from the company’s board and executive suites entirely. In 2008, with the financial crisis seriously limiting his options, Musk personally saved Tesla

10 weeks old (the Musks later went on to have a twin and triplet boys). Musk started dating actress Talulah Riley later that year. They went on to get married in 2010, then divorced in 2012. In July 2013, they remarried. In December 2014, Musk filed for divorce but withdrew the paperwork. In March 2016, Riley filed for divorce; that divorce was finalized in October. Right around Christmas 2008, Musk got two pieces of good news: SpaceX had landed a $1.5 billion contract with NASA to deliver supplies into space, and Tesla finally found more outside investors. By June 2010, Tesla held a successful initial public offering. The company raised $226

July

Enterpreneur

ELON MUSK AND HIS MOTHER MAYE MUSK

million in the IPO, becoming the first car company to go public since Ford in 1956. To get his finances back on track, Musk sold shares worth about $15 million in the offering. Musk’s extraordinary career was starting to get noticed in other circles, too, most notably in Hollywood. Robert Downey Jr.’s portrayal of Tony Stark in the “Iron Man” movies is at least partially based on Musk. Musk even had a cameo in “Iron Man 2.” By the end of 2015, SpaceX had made 24 launches on assignments like resupplying the International Space Station, setting lots of records along the way. In 2016, the SpaceX Falcon 9 made the first successful ocean landing of a reusable orbital rocket. The Falcon Heavy, the successor to the Falcon 9 and the most powerful rocket SpaceX has built to date, completed a successful maiden launch in February 2018. The Falcon Heavy carried a unique payload: a dummy dubbed “Starman,” and Musk’s personal cherry red Tesla Roadster, which were launched toward Martian orbit. Musk can’t stop coming up with new ideas, either, like the Hyperloop. A super-high-speed train that travels in a vacuum tube, the Hyperloop could theoretically transport passengers from Los Angeles to San Francisco in 30 minutes. In a similar vein, Musk started another company in 2016 — The Boring Company, which has a mission to dig a network of tunnels under and around cities for high-speed, no-traffic driving.

July

Musk is among the 25 wealthiest people in the world, with a net worth valued at more than $37 billion And in late 2015, Musk co-founded OpenAI, a nonprofit dedicated to researching artificial intelligence and ensuring it doesn’t destroy humanity. Musk has expressed concern that the race for better AI could end up sparking a third world war. More recently, Musk announced he was stepping down from the board of OpenAI in February 2018 to avoid any potential conflicts of interest with Tesla, which has made strides into artificial intelligence for its self-driving car technology. Musk founded one more company, this one in 2017: Neuralink, which is trying to build devices that can be implanted inside the human brain. Musk started dating “Aquaman” actress Amber Heard, but the two broke up in 2017 after a year of dating. Musk later said in an interview with Rolling Stone that the breakup was very hard on him. The year was a bit rocky from a political standpoint as well. Musk joined President Trump’s business advisory council, a move which caused

a huge public backlash. He initially defended the move, but he quit after Trump pulled the US out of the Paris Agreement on climate change. Musk said he tried to convince Trump not to withdraw. In the spring of 2018, there was a new development in Musk’s personal life — he and the musician Grimes struck up a relationship. They reportedly hit it off after they both made the same nerdy joke about artificial intelligence. Musk ran into some trouble in 2018 when he sent a tweet declaring he was considering taking Tesla private at $420 per share and had already secured funding. Just a few days later, the SEC sent Tesla subpoenas about the company’s plans to go private and Musk’s comments. By September, the SEC had formally filed a lawsuit against Musk, accusing him of making “false and misleading statements.” Musk settled with the SEC, which resulted in both him and Tesla paying a $20 million fine and Musk agreeing to step down as chairman of Tesla’s board. Additionally, Tesla was required to appoint a committee to oversee Musk’s communications. In November 2019, Musk debuted a new Tesla vehicle: the Cybertruck, Tesla’s first — and very highly anticipated — pickup truck. Since the unveiling, Musk has been spotted a few times cruising around in the truck, including on a night out to dinner at Nobu with Grimes. Grimes dropped a bombshell in January 2020 when she posted a photo of herself where she appeared pregnant. The musician later confirmed that she was expecting a baby with Musk. Musk has been outspoken about the coronavirus crisis in the US since early March when he first tweeted that panic over the virus was “dumb.” Since then, Musk has gone on to promote a malaria drug as a potential treatment for COVID-19 patients despite a lack of scientific proof, has caused confusion over his promise to deliver ventilators to hospitals, and has promoted misinformation, such as a tweet that said “kids are essentially immune” from the virus. Despite having a substantial real estate portfolio, Musk recently said that he “will own no house” and would sell almost all of his physical possessions. He has since listed two of his Bel Air homes and five more properties worth over $100 million. On 4 May, Grimes gave birth to a baby boy who the couple has said is named X Æ A-12 Musk, pronounced “X Ash Archangel.”

PROFILE

Music Begins Where Words End Standing in front of more than 100 musicians of a wonderful orchestra like the Belgrade Philharmonic, conducting from memory without a score, looking around into the eyes of all musicians, breathing together with them, climbing together with huge “crescendos” (meaning the orchestra is getting increasingly louder) and crossing millions and millions of colours in sound and different emotions – this is how I try to use words to describe my obsession with my job

GABRIEL FELTZ, CHIEF CONDUCTOR OF THE BELGRADE PHILHARMONIC ORCHESTRA

escriinge my personal accomplishments here in this CorD magazine comment is also a very interesting challenge for me personally. That’s because I’m a musician, a conductor, and that means that my biggest triumph is a concert in which the orchestra and I progress together along the path of the composer. We have to follow his genius and his way of composing, which is printed in the score, just as we would follow footsteps. That may not sound creative, but we are not slaves to the composer. Everybody who ever had a real experience with classical music on stage knows what I’m talking about. A good performance of a huge symphony like Mahler’s 2nd symphony “Resurrection” (which we performed in Belgrade in June 2019) or Bruckner’s tremendous 5th symphony (which we performed in Belgrade in December 2019) always marks an unforgettable memory in my heart, in my soul. Comparing that to other businesses, there is no economic, physical, technical or calculable result. Every note is heard for just a single mo-

ment during a concert. Even a recording on a CD cannot preserve the broad and wide area of emotions elicited by conducting such a concert. Standing in front of more than 100 musicians of a wonderful orchestra like the Belgrade Philharmonic, conducting from memory without a score, looking around into the eyes of all musicians, breathing together with them, climbing together with huge “crescendos” (meaning the orchestra is getting increasingly louder) and crossing millions and millions of colours in sound and different emotions – this is how I try to use words to describe my obsession with my job. My motto has always been “music starts where words end”. And because of that it is quite funny for me to write an article about myself here in this magazine. I have worked hard on myself in order to earn this privileged position in which I lead important orchestras all over the world. A good conductor is not only a musician, but rather needs many more skills. I would like to list some of them here: must-haves include psychological sensitivity, managerial qualities, strong energy as a leader, an ability to learn quickly, an excellent ear, proficiency in playing at least one instrument at a professional level, a memory for all historical facts, circumstances of composing and so on for the particular piece you rehearse and, last but not least, an optimistic mind – especially now during the Covid-19 crisis-.Immediately after completing my studies, I started working at the Hamburg State Opera House as an assistant to the music director, without any practical experience of

German theatres. I had to jump into cold water. There were many things I’d never done before, like conducting stage music in performances without any rehearsal, following many singers in auditions prima-vista at a piano, taking over rehearsals in a very short period and learning, learning and learning scores like a maniac. Of course, I experienced both victories and losses. Between the ages of 28 and 38 there were many nights during which I didn’t sleep for more than four hours. As the saying goes in Germany: “Ohne Fleiß kein Preis” – “No pain, no gain”. I believe in that. As of about 20 years ago to this day, I really have been a freak with time. I deal with and calculate time like other people do with money. I prepare pretty full days very precisely in minutes, and fight for time frames to learn and dive into music. I’m sure there are colleagues smiling about that statement. However, I think that good management for myself also gives me the opportunity to step beyond the business of classical music and just be a normal person, a father, a husband and a private person. GlosaA good conductor is not only a musician, but rather needs many more skills... must-haves include psychological sensitivity, managerial qualities, strong energy as a leader, an ability to learn quickly, an excellent ear, proficiency in playing at least one instrument at a professional level, a memory for all historical facts, circumstances of composing and so on for the particular piece you rehearse, as well as an optimistic mind.

July

Art

150 Years

Of The Metropolitan Museum Of Art

It’s time to celebrate 150 years of the Met! The Metropolitan Museum of Art in New York City is America’s largest and most important art museum. It’s also one of the world’s most significant museums 44

July

By Alexandra Kiely/Daily Art Magazine

t has a vast, encyclopedic collection, exciting exhibitions, high-level scholarship, and a spacious building on the Upper East Side. According to the museum’s website, you can “experience 5,000 years of art at The Met”, and that’s undoubtedly true. Every art lover will find plenty to enjoy there. The Metropolitan Museum of Art’s Statement of Mission, adopted in 2015. In 2020, the Met celebrates its 150th birthday with a year of special events. To kick things off, let’s look back at some milestones in 150 years of the Met. 19TH CENTURY 4th July 1866 – American lawyer and diplomat John Jay (1817-1894) first proposed founding an art museum in New York City. He made the suggestion to influential Americans attending a Fourth of July party in Paris, and his idea quickly gained traction. 13th April 1870 – The Metropolitan Museum of Art was officially incorporated with the state of New York. However, it did not yet have art to display nor a place to display it. 20th February 1872 – The museum opened to the public. Its first home was a leased space in the Dodworth Building at 681 Fifth Avenue, near the present-day MOMA. 1874-6 – The Met acquired the Cesnola Collection of ancient art from Cyprus. This was the first of many major private collections to find a home in the museum. It also represented the Met’s first big step into the world of classical art, since the majority of its earlier acquisitions were Old Masters. Collector Luigi Palma di Cesnola (1832-1904) became the first director in 150 years of the Met. 30th March 1880 – The Metropolitan Museum of Art moved to its long-term address at the corner of Fifth Avenue and 82nd Street, just inside Central Park. It was on this date that the museum’s first permanent building opened. It was a Neo-Gothic brick building designed by Calvert Vaux and Jacob Wrey Mould. This original structure still exists, but it’s been absorbed on all sides by later additions. You can see a portion of the old brick facade in one place. Just enter the Lehman Wing from the medieval galleries and look back the way you came. 20TH CENTURY December 1902 – The Met as we see it today took shape when Richard Morris Hunt’s now-iconic Beaux-Arts facade and Great Hall opened to the public.

1917 – Among the Met’s 1917 acquisitions was a small, blue faience statuette of a hippopotamus. It was made in Twelfth-Dynasty Egypt (c. 19611878 BCE), buried in a tomb, and excavated in 1910. Ancient Egyptian faience animals, including hippopotami, are relatively common, but the Met’s version became particularly popular with visitors. Christened William in the 1930s, he is now the Met’s mascot. The Met Store sells Wil-

ures includes the Unicorn Tapestries, the Cloisters Cross, and the Belles Heures of Jean, Duc de Berry. Although the Met Cloisters has never been as well known as the main building on Fifth Avenue, it gained visibility in 2018 when it hosted part of the Costume Institute’s annual exhibition Heavenly Bodies: Fashion and the Catholic Imagination. 1946 – The Museum of Costume Art joined the Met to became the Costume Institute, a repository

OPENING RECEPTION ON FEBRUARY 20, 1872, IN THE PICTURE GALLERY IN DODWORTH MANSION (681 FIFTH AVENUE), THE FIRST HOME OF THE METROPOLITAN MUSEUM OF ART. WOOD ENGRAVING FROM “FRANK LESLIE’S ILLUSTRATED NEWSPAPER,” MARCH 9, 1872. IMAGE COURTESY OF THE METROPOLITAN MUSEUM OF ART liam the Hippopotamus-themed souvenirs, like socks, flash drives, and Christmas ornaments. To celebrate William’s centenary in 2017, Conversation between Two Hippos displayed him beside a modern version by Carl Walters. 10th May 1938 – The Cloisters, the Met’s medieval art outpost, opened with an initial collection formed by George Grey Barnard (1863-1938). It’s located in Fort Tryon Park, in northern Manhattan, on land donated by the John D. Rockefeller, Jr. (1874-1960). The medieval-inspired building is a 20th-century construction, but it contains many real Gothic and Romanesque elements. These include four medieval cloisters and the apse of a 12th-century Spanish church. All were purchased from their original sites in Europe, dismantled, sent to New York, and installed into the fabric of the museum. This makes the Cloisters a rare place where you can experience genuine medieval architecture in North America. The Cloisters large collection of medieval treas-

of historical and contemporary fashion.The Costume Institute’s annual fashion exhibitions have become much-anticipated events.The Met’s 2009 acquisition of the Brooklyn Museum’s vast costume collection has only enhanced them further. The Met Gala, a glamorous, celebrity-studded event that opens the yearly exhibition, first took place in 1948. 4th February – 4th March 1963 – The most famous painting in the world came to New York in the winter of 1963. Leonardo da Vinci’s Mona Lisa appeared in the Met’s medieval hall for about a month; she also visited the National Gallery of Art in Washington D.C. Attendance was spectacular. People waited in line for hours in the freezing cold to see the Mona Lisa. Over 60,000 people saw the painting in one day alone.* 1971-1991 – Under directors Thomas Hoving (1931-2009) and Philippe de Montebello (b. 1936) the Met put together a long-range master plan and executed a major expansion by Kevin Roche John Dinkeloo and Associates. This massive project cre-

July

Art The Metropolitan Museum of Art collects, studies, conserves and presents significant works of art across all times and cultures in order to connect people to creativity, knowledge and ideas ated many of the spacious, light-filled galleries we enjoy today, such as the American Wing in 1980 and the Michael C. Rockefeller Wing for arts from Africa, Oceania, and the Americas in 1982. This construction campaign included new galleries for the next two milestones on this list. 1975 – American banker Robert Lehman (1891-1969) spent decades assembling a worldclass art collection that he displayed in his New York City townhouse. Upon his death, Lehman left almost 3,000 objects to the Met under the condition that his entire collection be displayed together in a replica of his townhouse. Unusually, the Met agreed and built the Robert Lehman Wing to fulfil these wishes. The Lehman Collection includes Old Master paintings, masterpieces of Impressionism and Post-Impressionism, early Italian art, Renaissance furniture, and precious objects of porcelain and metalwork. 1978 – The Met added a very special object to its collections. The Temple of Dendur is a first century BCE temple from Roman-ruled Egypt. When Egypt built the Aswan Dam in the 1960s, the temple and numerous other historic sites in the flood zone faced certain annihilation. Through efforts by UNESCO, fifty countries contributed money and expertise to record and save as many of these monuments as possible. The Egyptian government gave the Temple of Dendur to the United States in gratitude for the country’s major contributions. The Met beat out several other American institutions to get the temple, largely because of an inspired plan to house it. The Sackler Wing was designed and built specifically for the Temple of Dendur. This massive pavilion has a sloping glass wall so that the temple retains the appearance of being outside while actually enjoying protection from the elements. An artificial

July

THE MET FIFTH AVENUE MAIN ENTRANCE WITH STUDENTS CELEBRATING FLAG DAY ON JUNE 14, 1916. IMAGE COPYRIGHT THE METROPOLITAN MUSEUM OF ART

THE MET CLOISTERS. PHOTO BY BRETT BEYER

THE MET FIFTH AVENUE. PETRIE COURT. PHOTO BY BRETT BEYER

Encouraging and developing the study of fine arts and the application of the arts to manufacturing and practical life, of advancing the general knowledge of kindred subjects, and, to that end, furnishing popular instruction and recreation

THE MET FIFTH AVENUE (NEW YORK, NY). THE TEMPLE OF DENDUR. PHOTO COURTESY OF THE MET

THE MET FIFTH AVENUE. GREAT HALL. PHOTO BY BRETT BEYER waterway runs around it. Visitors can walk through the Temple of Dendur, and I highly recommend the experience. The Sackler Wing also hosts many performances and cultural events set against this unforgettable backdrop. Two U.S. Presidents have held state dinners there. 21ST CENTURY 2000s – The end of the 20th century marked the last major expansions in 150 years of the Met. Instead, the museum has focused on renovation, giving existing galleries fresh new quarters that have allowed curators to update and re-imagine permanent displays. The Galleries for the Art of the Arab Lands, Turkey, Iran, Central Asia, and Later South Asia (Islamic art) were completely renovated

THE MET FIFTH AVENUE, THE CHARLES ENGELHARD COURT IN THE AMERICAN WING. PHOTO COURTESY OF THE MET

and reinstalled in 2011. The American Wing got a face lift in 2012, and the Costume Institute’s basement galleries were updated in 2014. Continuing this trend, newly refreshed British decorative arts galleries opened on 2nd March 2020. 2011 – The Costume Institute’s summer shows are always well attended, but none before or since has ever taken off quite like Alexander McQueen: Savage Beauty. This 2011 exhibition of dramatic couture by the recently-deceased British fashion designer attracted 661,509 people. The museum had to extend both the duration of the exhibition and daily museum hours to meet the demand. 2016 – The Met acquired its second outpost in the Breuer building, formerly home to the Whitney Museum of American Art. It is located

on Madison Avenue not far from the Met’s main building. When the Whitney moved out in 2014, this iconic building’s future was uncertain until the Met signed an eight-year lease on the space. The Met Breuer, as it’s now called, focuses on modern and contemporary art, which have not traditionally been well-represented in the main building. However, rumour has it that the Met may leave the Breuer building soon. If so, the Frick Collection will likely exhibit there during its upcoming renovation. 2020 – The Met turns 150. The museum is celebrating 150 years of the Met with events all year long, including the special exhibition Making the Met, 1870-2020. There were also three days of festivities from 4th to 6th June.

July

&FACES PLACES 29/5/2020

Mexico And Montenegro Sign MoU On Diplomatic-academic Cooperation

Mexico and Montenegro signed a Memorandum of Understanding on diplomatic-academic cooperation at the Embassy of Mexico in Belgrade. “The memorandum is the result of good cooperation between the two ministries of foreign affairs and the interests of both countries to establish quality cooperation in the field of diplomatic and academic training and strengthen friendship and overall cooperation between our two countries,” said Montenegrin Ambassador to Serbia Tarzan Milosevic. “Mexico and Montenegro have many similarities in international politics where there is productive cooperation with mutual assistance in various initiatives,” said Mexican Ambassador to Serbia Marco Antonio Garcia Blanco.

MINISTER OF ENVIRONMENTAL PROTECTION GORAN TRIVAN AND AMBASSADOR JAN LUNDIN AT THE SIGNING CEREMONY

AMBASSADOR OF MEXICO MARCO ANTONIO GARCIA BLANCO (LEFT) AND AMBASSADOR OF MONTENEGRO TARZAN MILOŠEVIĆ

4/6/2020

Serbia And Sweden Sign Agreement On Continuation Of ENVAP3

AMBASSADOR OF CANADA KATI CSABA (CENTER)

30/5/2020

Ambassador Of Canada Recognised For Contribution To Promotion Of Gender Equality

Ambassador of Canada to Serbia H.E. Kati Csaba was recognised for her contributions to the promotion of gender equality. On 28 May the Gender Equality and Equality Council of Novi Pazar honoured the Ambassador Csaba for her contribution to the promotion and affirmation of gender equality and equal opportunities policies. Feminism and the promotion of the rights of women and girls are key elements of Canada’s foreign policy. Representatives of the Council for Gender Equality and Equal Opportunities of the City of Novi Pazar presented to H.E. Kati Csaba, Ambassador of Canada to Serbia a certificate at the event that took place at the Official Residence of the Embassy of Canada.

July

Minister of Environmental Protection Goran Trivan and Swedish Ambassador to Serbia Jan Lundin signed an agreement which continues the ENVAP 3 project and enables further expert assistance of Sweden in the process of Serbia’s EU accession in the field of environmental protection. The agreement stipulates that this project will be implemented by the end of April 2022, and will include monitoring the implementation of the negotiating position, as well as support for the implementation of certain priority actions. Minister Trivan thanked Sweden for its continuous assistance and support in the process of joining the European Union, emphasising that Sweden is one of Serbia’s main partners in achieving European environmental standards. Ambassador Lundin expressed satisfaction with the signing of the agreement extending the ENVAP programme for another period and the continuation of Sweden’s cooperation with Serbia in the field of environmental protection. He emphasised that Sweden invests €2 million a year in environmental reform in Serbia, which makes it a stable and largest bilateral partner of Serbia in this area.

SEE MORE: WWW.CORDMAGAZINE.COM

5/6/2020

National Day Of Sweden Marked

Embassy of Sweden to Serbia headed by the Ambassador H.E. Jan Lundin and his spouse Milica Lundin hosted marking of the National Day of that country. Due to the coronavirus pandemic, the Swedish National Day was marked with only a few guests at the Ambassadorial Residence. Swedes celebrate the National Day on 6 June in honour of two historical events: Gustav Vasa being elected king (6 June 1523) and the adoption AMBASSADOR LUNDIN, MILICA LUNDIN, BRANKICA JANKOVIC AND JOACHIM WAERN of a new constitution (6 June 1809). 18/6/2020

Ambassador Of Croatia Meets Members Of The Croatian Business Club

Ambassador of the Republic of Croatia to Serbia H.E. Hidajet Biščević hosted a gathering with members of the Croatian Business Club on 18 June at the Embassy in Belgrade. Introducing himself, he said that he was ready to use his experience to contribute to the improvement of relations between Serbia and Croatia on the basis of European values, as it is very important for regional stability and progress in the region. Stressing the need to strengthen cooperation between Serbia and Croatia, Ambassador Biščević said that he had prepared project proposals for cooperation in the field of infrastructure and energy, such as restoring the navigability of the Sava and Danube, and called on Croatian Business Club members to propose ideas that would improve relations between the two countries.

AMBASSADOR GABIT SYZDYKBEKOV WITH A SPOUSE

24/6/2020

Friends Of Kazakhstan Club Event AMBASSADOR OF CROATIA TO SERBIA HIDAJET BIŠČEVIĆ

On 24 June a presentation of the “Friends of Kazakhstan Club” was held in the building of the Embassy of the Republic of Kazakhstan in Serbia. The event was attended by prominent political figures, representatives of scientific and business circles, sports and culture. In his speech, the Ambassador of Kazakhstan H.E. Gabit Syzdykbekov noted that the Club will contribute to the strengthening of comprehensive cooperation, and also informed its members about political and socio-economic reforms in Kazakhstan during the year of K. Tokayev’s presidency. Guests were shown videos on national traditions, tourist potential and culture, as well as on the eve of the Day of the Capital City of Kazakhstan, on the dynamics of development of Nur Sultan and other cities of the republic.

July

My life

Branka Parlić, Pianist This part of Europe was discovered by Erik Satie and New Music at a time when Gershwin and Chopin were popular, she has spent forty years conveying to students her love for current music, while her performances have more than five million views on YouTube

The Art

Of Pure Sound 50

July

e will start with the most recent development: we are talking to Branka Parlić while she’s preparing the programme for European Minimalists, though she doesn’t know when she will present it in front of the audience, because the concert planned to be held on 28th June in Kolarac University hall was postponed due to the Coronavirus outbreak. “We are preparing as though normal concert activities will resume soon, when sporting events have already begun taking place, and with such a large number of spectators,” says our interlocutor, who is a native of Novi Sad and one of the most prominent performers of New and minimalist music in Europe, a professor at the Academy of Arts in Novi Sad, and perhaps, above all, a pianist who discovered Erik Satie in this part of the world and turned him into a cult composer. On this occasion, we will mention only her latest performance: two concerts she held in London - at the end of February at St John’s Smith Square and at St Martin in the Fields church on November. All of the aforementioned probably wouldn’t have come to pass if it weren’t for the piano that

By Sonja Ćirić

Branka Parlić’s mother brought from Zagreb when the family moved to Kula because her father, a veterinarian, founded a veterinary station that still exists in that small town, at the behest of the then Ministry. The story is that “as a child, I found that this amazing piano provided a great place to play with my sister. We used it as a shelter in our games and a place for peaceful retreats. I had a feeling of respect for this gigantic mechanism that scared me by its immensity, but at the same time I felt protected. I also remember a scent of wood of this grand music box, which instilled in me feelings of comfort, closeness and trust. This was a scent that I could feel later in my life whenever I lifted a piano lid to practise. Even now when I sense it, I often picture my mum’s black grand Stelzhammer piano and feel a kiss on my head that my dad used to give me whenever he found me practising.” Playing under the piano continued until the day the mother of our interlocutor, who also played the piano very well and was extremely musical, entered the house and told them that she had enrolled Branka and her sister in the music school that had just been established. “At the time I was seven years old and had just started primary school. The music school was situated in a charming old villa on the main street in Kula’s town centre. I attended my music lessons in this beautiful setting for a few years, before the school was relocated. I had lots of fun with my friends at music school. In such an environment I found that even solfeggio lessons became amusing, although this subject was considered rather demanding and tedious for young children. My first piano teacher was Mr Jovan Jerkov, whom I still gratefully greet at concerts in Novi Sad. Similarly to other young pupils, I was not very keen on piano practise during the first two years of music school, but my mother kept me and my sister practising regularly at home. However, in my third year I started enjoying practising more, as if something snapped in me. That was also the time when I started performing at the music school concerts, which made my parents, especially my mother, rather delighted and proud. From then on I became more proactive and independent in preparing my pieces, because I suddenly realised that attending the music school, practising and learning about music, was not so boring.” During her studies at the Faculty of Music Arts in Belgrade in the class of Professor Olga

I started researching Satie’s work together with the late Mitar Subotić Suba, a Novi Sad-based composer and producer Mihailović, at the Students’ Culture Centre, she discovered what was current in music. There students of Composition founded the Ensemble for other new music, and she joined them. “We were all already familiar with, or slowly getting acquainted with, new sound and new ideas in the interpretation of sound and music generally,” she says. At Bitef in 1976, during the time of her studies, the opera Einstein on the Beach was performed, in the presence of its author Philip Glass and director Robert Wilson, which was a special experience for everyone from the Ensemble. “Our first concert took place on 2nd December 1977 at the Students’ Culture Centre in Belgrade. Among other compositions performed was Permutations by Miloš Raičković, for three pianos and 18 hands. With the support of then editor of the SKC Music Programme and Ensemble member Miroslav Miša

Savić, the Ensemble made guest appearances in several cities abroad, performing at the 1979 Music Biennale in Zagreb. It stopped working after 10 years. Forty years later, the old members of the Ensemble, together with up and coming younger pianists and composers, gathered again and held a concert in the SKC Hall, on the same day and month and at the same place where the first concert took place. The intention was just to mark an important date for us and a wonderful period in life. However, due to the enthusiasm and excitement we felt during the concert, and due to the incredible reaction of the audience, we decided to reactivate the Ensemble, which we did. Now, three years after the comeback concert, we have participated in three major international festivals, held several concerts in Belgrade, Novi Sad, Niš and Kassel, Germany, and participated in Radio Belgrade’s show Studio 6.” She graduated in 1979. At this point in our conversation about the life of Branka Parlić we somehow come to the story of Erik Satie, a legendary, controversial composer from the end of the 19th century whose compositions she recorded on the 1986 album “Initiés”, thus presenting him to this part of Europe. Specifically, there are few artists at the world level who are considered as knowing and performing his music better than her. The story that she discovered him by chance “in the 1980s in the cartoon Satiemania by Zdenko Gašparović, for which Satie’s music was performed by Aldo Ciccolini. “I knew something about the cartoon, but nothing about the author of the music. I started researching Satie’s work together with the late Mitar Subotić Suba, a Novi Sad-based composer and producer who tragically died in Brazil in 1999. Suba brought notes and a few records from Paris. As there was still no internet at that time, we had very little information about Satie, and we concluded on the basis of scores and his unusual compositional procedure alone that Satie’s music was a kind of herald of minimalism in music. His music did not belong to any of the artistic directions of that time; it was completely timeless and has remained so even today. With his unusual instructions written in the score, Satie suggested that the performer interpret the music completely freely. I was attracted by the fact that a musician is no longer just an interpreter of other people’s ideas and moods, but becomes an interpreter/creator. Without changing the cited notation, the musician has completely

July

My life

Branka Parlić, Pianist

COVENT GARDEN, ST PAUL’S, B.PARLIC

open access to the piece they are performing. That’s the reason I didn’t want to listen to the records with Satie’s music that Suba brought back from Paris, along with the notes. I wanted to give myself complete freedom, unencumbered by other people’s interpretations.” In an environment such as ours, which is accustomed to so-called light composers like Gershwin and Chopin, it was risky for a pianist to present themselves with works of minimalism whose music is characterised, as she explains, “by the repetition of phrases, which creates a ‘pure sound’, sound as a kind of ambience, so music that must be listened to as the art of pure sound, as an act without any kind of dramatic structure whatsoever, music that expresses nothing.” She explains that “With New Music, the freedom to create is much greater because it is about music of the time in which we live and in a way the idea of the composer is closer to us, so the performer is free to express it through their personal experience. But such freedom nonetheless requires a lot of knowledge, a lot of listening to the compositions of that period and creativity.” She was attracted to new music by the search for “a new sound, new composers and new literature. As a student, I preferred to play baroque and early classical music, and since baroque music is polyphonic, I now understand that this uniform pulsation attracted me even before I became familiar with

July

With New Music, the freedom to create is much greater because it is about music of the time in which we live and in a way the idea of the composer is closer to us, so the performer is free to express it through their personal experience repetitive minimalism. As a reason I don’t exclude the perhaps possible selfish attitude to play only music that is close to my sensibility and gives me complete satisfaction.” She was the editor of a series of ten concerts, entitled “New Ears for New Music”, from 2006 to 2012, and gave premiere performances of a large number of compositions by European and American composers. She recalls that the series included the guest performances of great artists, such as “composer and pianist Hauschka from Germany, Mark Melits Consort from Chicago, Swiss piano duo Gareis & Pohl and composer and double bassist Florant Ghys, then a rising

star and now an artist with a significant place on New York’s New music scene. The series had its own recognisability, an audience that filled halls, but support stopped unexpectedly after 2012. A large number of proposed projects – including a celebration of the 100th anniversary of the birth of John Cage – were not accepted, so the series, which had brought great innovation and changes to the Novi Sad scene, died out abruptly.” At one of two London concerts performed this February, she played the composition After Hendl’s Vesper by British composer Gavin Bryars for the first time. “To my great satisfaction, composer Gavin Bryars accepted my invitation and was present at the concert. We spoke after the concert and I told him that, together with my colleague and fellow pianist Nataša Penezić, I was planning a concert dedicated to his music in Belgrade, and that our great desire was for him to be present. I still hope that we will be able to secure the necessary funds and organise a concert of an extremely important British composer like Gavin Bryars, although I’m aware that in this post-Corona period the realisation of that concert is much further away than it seemed just four months ago.” She tells us that she also established contact in London at the time with composer John White, a member of the British Experimental School, and he invited her to a concert at his house in North London, which was

By Sonja Ćirić

to be attended by other members of the British Experimental School, but White fell ill and the concert was cancelled.“I remained in touch after he recovered and received his piano Sonatas, which I would like to perform in the future, hopefully at one of his concerts too. Moreover, I keep in touch with Philip Glass through his close collaborators and staff. Philip Glass has been familiar with the calendar of international performances of his compositions, and I ensure that he is informed about performances in Serbia and dates of my concerts at which I perform his pieces. I had the opportunity to meet Philip Glass after his concert at London’s Royal Festival Hall in 2013. We had a chat about my performances of his music and he was keen to receive my CD Metamorphosis, which I posted to him afterwards.” Her performances of Satie, Glass, Najman and Mertens have amassed more than five million views on YouTube. Is new music a way to promote classical music? Branka confirms that it is, but also considers that “the greater engagement and assistance of institutions is needed, and above all the media which, by regular monitoring and affirming high quality artistic events, would contribute to changing the attitude towards true artistic values, instead of favouring consumables with poor quality, inappropriate, primitive and kitsch programmes.” She says that for the recording of her latest vinyl, “Initiés 2017”, Swiss man Jürg Schopper, who produced it, “used a Telefunken M10 Tube Tape Machine, Neumann microphones, creating a fantastic sound in which you can hear the flicker of the strings, even my breathing. In analogue recorded sound we hear the sound in space, or the space in sound. I’m not even sure how I would define that; it’s just that the sound is like you’re in the middle of a big acoustic space and you’re listening to a performance on a Steinway D model piano.” With the completion of this academic year she ends her pedagogical career and says that, together with students at the Academy of Arts in Novi Sad, she “devoted lots of time to working on compositions from the second half of the 20th century and the 21st century. I often suggested to them which music to listen to from that period. I’ve stayed in touch with many of those who’ve gone through my class over the past 40 years. For some of them, who were on the Composition study programme, working on piano lessons helped them to find their personal expression in composing.”

The greater engagement and assistance of institutions is needed, and above all the media which, by regular monitoring and affirming high quality artistic events, would contribute to changing the attitude towards true artistic values How do family and friends fit into all of Branka’s activities? “Family has always been a great support, but also a participant in designing every concert as an event. From the name of the concert (Cade, Jellyfish Trap, Grimaces, Jack in the box, Metamorphosis, The Cone Gatherers etc.), through the stage, lighting, posters, concert programme, all the way to the sticking of posters, when that was necessary. Now that so many years have passed, I feel that I missed out on a lot in my son’s upbringing and that I was not dedicated enough to him. I was there at home, present but more often at the piano than playing with him. My husband, Čedomir Drča, who designed all

the printed material for my concerts, sound carriers, lectures and workshops, most often did that while he was with the child. He took him with him by agreement to appointments with printers, cameramen, masters of light, so Stanislav was present at every stage of the work on the preparation of concerts, all the way to the very end, or watching and listening to his mother on stage. He was also present at all our meetings and gatherings with friends, musicians, painters, writers. All of that contributed to the fact that, a few years later, as a student of natural sciences in high school, at one point he turned towards art and then enrolled and graduated in New Art Media at the Academy of Arts in Novi Sad. Today we support each other mutually, and the visual illustration of that support is the logo on which the three of us are pictured on a bicycle.” And so, as we stated at the beginning, while waiting for some safer time than this one, she is preparing a new programme for a new concert. “English composer Neil Campbell, Russian Pavel Karmanov and Italian Alfonso Peduto sent us their compositions arranged for six pianos. Along with their works, we are also working on the works of two local composers, Dragoljub Ilić and Dimitrije Beljanski. The concert scheduled for 28th June at Kolarac has, of course, been postponed, and all further plans are uncertain, but that’s no reason not to do what we love.”

July

CHILL OUT WORLD

Two ‘Super-Earths’ Discovered A pair of ‘super Earth’ planets orbiting ‘just within the habitable zone’ of a nearby red dwarf star half the size of the Sun have been discovered by astronomers. The star these potentially rocky world’s orbit is called Gliese 887 - it is 11 light-years away from the Earth and one of the brightest red dwarf stars in the night sky. As the planets are on the ‘inner edge’ of the habitable zone - that is the region where liquid water can remain on the surface - they may be too hot to sustain life. The new planets were found using a high-precision, planet-finding instrument on the European Southern Observatory’s 3.6-metre telescope at La Silla in Chile. Astronomers from Australia, who discovered the planets, were working with the international RedDots team that hunts for terrestrial planets around red dwarf stars. BALI

Tourists Slammed For ‘Irresponsible’ Pic

NETHERLANDS

15 June Global Wind Day

A luxurious Bali yoga and meditation retreat has come under fire after more than a hundred people gathered for a “celebration of community and bliss” flouting local coronavirus restrictions. Guests were invited to House of Om’s luxurious “Sky Shala” in Ubud in an invitation shared on social media. The invite said: “Our intention is to gather more than 100 Bhakti and Kirtan lovers to cocreate an amazing celebration together.” Kirtan is a ritual involving chanting. The organiser of the event has now issued an apology for their “irresponsible actions” after photos showed the attendees gathered tightly together chanting with no masks on.

Windmills have been used for centuries to convert wind power into energy, from the early models using sails to grind grain and pump water to the ultramodern, sleek blades of wind turbines generating green energy today. Early Persian models inspired the classic windmills of Europe, which have become a symbol of the Netherlands. Used to power industry and pump water out of the lowlands, there are still around 1,000 Dutch windmills left today. Sails can be used to convey messages, such as a death in the family, a happy occasion or a period of inactivity. Sail signals were even used to warn against Nazi raids. US

Jeff Bezos’ Futuristic Vision Of Self-sustaining Habitats Amazon CEO Jeff Bezos finally lifted the veil on the lunar lander his aerospace company has been developing in secret for years, along with a plan to put humans back on the moon to stay. And in the process, he also revealed an ambitious vision for space colonisation. Building off of a concept introduced decades ago by physicist Gerard O’Neill – who Bezos himself studied under during his time at Princeton, according to Fast Company – the Blue Origin founder outlined self-sustaining habitats that could hold entire cities, agricultural areas, and even national parks in space. While such a future may still be a ways off, Bezos says it will be an ‘easy choice’ when faced with dwindling resources on Earth.

July

FINLAND

Dogs Can Sniff Out COVID-19 In a Finnish study, dogs learned to recognize the distinctive odor of a coronavirus infection. In the future, dogs might be able to detect infected people in nursing homes or at airports. In a pilot study at the University of Helsinki, dogs trained as medical diagnostic assistants were taught to recognize the previously unknown odor signature of the COVID-19 disease caused by the novel coronavirus. And they learned with astonishing success: After only a few weeks, the first dogs were able to accurately distinguish urine samples from COVID-19 patients from urine samples of healthy individuals. “We have solid experience in training disease-related scent detection dogs. It was fantastic to see how fast the dogs took to the new smell,” says DogRisk group leader Anna HielmBjörkman. After only a short time, the animals identified the urine of people infected by the novel coronavirus, known as SARS-CoV-2, almost as reliably as a standard PCR test.

MEXICO

Oldest And Biggest Mayan Monument Discovered Archaeologists have discovered a monumental Mayan complex in southern Mexico, using laser scanners. It’s hoped the spectacular find will reveal surprising insights into a community that lived there 3,000 years ago. The impressive pyramid-style cities of the ancient Mayan culture, such as at Tikal in Guatemala, can be found described in any travel book. But the many of the other monumental buildings, houses, roads and paths, water works and drainage systems, and terraces still lay hidden in dense rain forest. Since 2017, researchers have been flying over a border region between Mexico and Guatemala with laser scanners to systematically investigate any promising ground structures. The laser scanners use LiDAR Technology (light detection and ranging), and with that the researchers have made a number of spectacular discoveries over the past few years, and won new insights into the lives of the ancient Mayan people.

Facebook Bans Sale Of Ancient Artefacts Facebook has banned the sale of all ancient artefacts amid fears that items looted from Iraq and Syria are being traded on its platforms. The move — a tightening of previous rules that only covered stolen artefacts — followed a campaign by academics and a BBC News exposé of illicit sales. The changes were announced

SPAIN

Botched Bartolomé Esteban Murillo Painting Restoration Goes Viral A private art collector in Valencia, Spain has become the latest victim of botched art restoration after a painting by Bartolomé Esteban Murillo returned unrecognisable. The collector paid €1200 ($1956) to a furniture restorer to renew the faded painting of The Immaculate Conception, reported Europa Press and the New Zealand Herald. Horrified by the result, the amateur restorers tried to fix their mistake, only to make it worse. After two botched attempts to fix it, the once demure, Baroque portrait of Mary appears to be heavily made up with flattened features.

as part of a new set of Facebook Community Standards released by the California-based social media firm on June 23, 2020. Users are now instructed under the ‘regulated goods’ section to not post ‘content that attempts to buy, sell, trade, donate, gift or solicit historical artefacts.’ Such artefacts could include, for example, ancient coins, scrolls, manuscripts, sculptures, mosaics and even mummified body parts.

July

Fashion Trends

Summer 2020

If you've looked through your wardrobe and felt like you're ready for a shopping spree, it’s time to get inspired by the best street style from fashion outlets. From classic pieces with an updated twist to fresh tailoring, there’s a myriad of looks for everyone’s personal style. Get ready to update your wardrobe with these coolest fashion trends spotted during summer 2020 fashion weeks.

ssoulin Roxanne A of five

Nemo set goldd enamel an elets tone brac €380

Gucci

Grosgraintrimmed glittered straw hat €480

ewe

Lo r-style gold ell to ia v A h s e rtois tone and to nglasses u s te ta e c a €330

Hermes

Heure H21mm small gold-plated €2,680

Rodebjer

Waves silk caftan €450

Altuzarra

ed small fring Espadrille a tote raffi €650

Emma Parsons Bari leather sandals €350

July

Lisa Marie Fernandez

Magdalena button-embellished seersucker bikini €350

Etnia Barcelona

Ibiza 01 Sunglasses €250

Frescobol Carioca

Ribbon-trimmed straw panama hat €200

t Saint Larenme

Square-Fra ilverdS c A etate an lasses g n u S e Ton €275

Loro Piana

Cotton-Pique Polo Shirt €370

Paul Smith

Shark Tooth-Print Swim Shorts €105

Ralph Lauren

Linen Chambray Shirt-All Fits €120

Mulo

Suede Espadrilles €103

Loro Pianassic flat

Slim cla Pantaflat er in ultra-fine u front tro s denim linen €480

July

Culture

calendar Exhibition Giants in Pharmacy

1 - 11 - SANU Gallery The exhibition “Giants in Pharmacy” will be opened in the Gallery of Science and Technology of SANU on Wednesday, 1 July 1. The exhibition is dedicated to academicians Stevan Jakovljević and Jovan Tucakov, greats of the Serbian pharmacy. Academician Stevan Jakovljević was a writer and first head of the Pharmaceutical Department and the first professor of botany at the University of Pharmacy. He left behind a significant scientific work, and even one silicate algae is named after him. Academician Jovan Tucakov, the founder of the “Josif Pančić” Institute, academic of medical sciences, the first professor of pharmacognosy at the University of Pharmacy, is recognized by the public as the best connoisseur of medicinal herbs. “Herbal Medicine” is a famous book, one of the favourites among children. The exhibition will feature archives, personal items, audio recordings, photographs from various private collections. The author intends to present to a broader audience the professional significance of two exceptional personalities important for the development of pharmacy studies in Serbia.

Sonja Moonear & Marko Nastic

31 – Barutana – 23.00 After two years, Sonja Moonear, the leading name of the world underground electronic scene returns to Barutana on Friday 31 July when she will perform with Marko Nastic, one of the biggest Serbian techno DJs and producers. One of the world’s three most sought-after female DJs, swiss Sonja Moonear, is coming to Belgrade again to demonstrate the fusion of subtle minimal and powerful techno groove and entertain with her authentic set and excellent mixing skills. She always carries a pile of records with her on the road because she says she never knows what to expect so that you can find everything in her suitcase - from ambience house and techno to editions with a funky and soulful sound.

Love Walk Through Belgrade 11 - Pionirski park – 11.00

Do you know who Belgrade’s Romeo and Juliet were, what woman Ivo Andrić patiently waited for 30 years, how many great loves Branislav Nušić had and what were the last words of Miloš Crnjanski? Do you know the love story that is hidden behind the walls of the “Russian Tsar” palace, what special, kind of love Nikola Spasić teaches us and what and what kind of love Jelisaveta Načić had to give up? Find out these, and other love stories in the threehour tourist “Love Walk Through Belgrade”. Do you love Belgrade, its history and stories? Want to know more about the people who built this city and made it special? Join themed walks through Belgrade and discover the fantastic and unique history of Belgrade!

July

Exhibition “Tanjug Reports, The War Is Over”

RECOMMENDS

5 – Museum of Yugoslavia

As part of the program marking the 75th anniversary of the end of the Second World War, the exhibition “TANJUG reports, the war is over” will open at the Museum of Yugoslavia on 5 July. In documentary photographs of great historical value, which will be presented to the public for the first time, the audience will be able to see what Yugoslavia looked like immediately before and after the liberation. The mentioned photos, taken by TANJUG’s photo-reporters Petar Obradović, Branko Savić and Isak Koen, have only recently been registered within the extensive photo material of the Museum of Yugoslavia, and the work on the preparation of the exhibition is accompanied by work on the documentation. It will be protected as a cultural asset. “Visitors will be able to see dramatic scenes of the final struggles for the liberation of the country, the most important moments of the completion of the political revolution, extensive interventions to rebuild the country and normalize life, ubiquitous scars and consequences of war, but also the beginning of institutionalized work to create a new one.”, a socialist man. ” The exhibition “TANJUG reports, the war is over” is the first step with which the Museum of Yugoslavia opens to the public the oldest preserved part of the photo archive of the Telegraph Agency “New Yugoslavia”, which was transferred to Marshal Tito’s Cabinet in 1947, to later become part of the Museum’s collection.

Kanda Kodža i Nebojša Concert

4 – Beer Garden – 21.00 In 2020, Kanda Kodža and Nebojša took a long look back at the band’s opus, and the result is a double album “Popis”. The first meeting with the Belgrade audience after his release was on 26 June on the Beer Garden, and band Bullet for a Badman will also perform as guests, led by a dear guest from the Census, Ivan Simić. Kanda Kodža and Nebojša, a band that has belonged to the very top of alternative creativity in the region since the 1990s, led by the unique frontman Oliver Nektarijević, will once again greet you in Feedback. The concert will be composed of great recognizable hits by KKN, but also new singles from the album “Popis”.

THE ART OF WAR

Sun Tzu 2640 rsd

The Art of War has been a source of great strategical inspiration throughout the ages. Focusing on military strategy, psychology and tactics, each section concentrates on a different facet of warfare and draws out important themes such as communication, strength and positioning. Believed to have been written by Chinese strategist Sun Tzu, The Art of War is highly regarded amongst Chinese culture, but its enduring wisdom has had a far-reaching impact all over the world.

NATIONAL GEOGRAPHIC COMPLETE NATIONAL PARKS OF EUROPE Justin Kavanagh 3542 rsd

Discover a wild (and often offthe-beaten-path) Europe--from Croatia’s coastal beauty to Scotland’s windswept highlands--in this comprehensive guide to 460 pristine parks and wild spaces, packed with full-colour photos, detailed maps, and practical tips. In these rich and informative pages, the travel pros at National Geographic bring you the premier guide to 460 national parks of Europe. Find your way to Snowdonia in Wales, offering more than 1,490 miles of walking trails through thick forests, coastal beaches, deep lakes, and jagged mountains. Catch a glimpse of more than 10,000 species inhabiting Germany’s Bavarian Forest. Explore the flora and fauna while camping amid the twin peaks of France’s Pyrénées. Or visit “the home of the giants,” Norway’s Jotunheimen park, containing the country’s 29 highest peaks and plenty of backcountry hiking.

BECOMING KIM JONG UN Jung H. Pak 1922 rsd

Peter Pan Ballet Performance

3 – Tašmajdan stadium – 18.00 The story is already known to everyone. To the music of Warbeck Stephen, which was written just for the ballet PETAR PAN, we will take you to the land of NEDOĐIJA to touch the children’s world of imagination. A show with a lot of acrobatics, fencing, comedy and beauty made to convey this beautiful story to children vividly.

SEE MORE: WWW.CORDMAGAZINE.COM

A groundbreaking account of the rise of North Korea’s dictator Kim Jong Un-from his nuclear ambitions to his summits with President Donald J. Trump-by a former CIA analyst considered one of the leading American experts on the North Korean ruler inside and outside the U.S. government Enter former CIA analyst Jung Pak, whose brilliant Brookings Institution essay “The Education of Kim Jong Un” cemented her status as the go-to authority on the calculating young leader. From the beginning of Kim’s reign, Pak has been at the forefront of shaping U.S. policy on North Korea and providing strategic assessments for leadership at the highest levels in the government. Now, in this excellent book, she traces and explains Kim’s ascent on the world stage, from his brutal power-consolidating purges to his abrupt pivot toward diplomatic engagement that led to his historic-and still poorly understoodsummits with President Trump. She also sheds light on how a top intelligence analyst assesses thorny national security problems: avoiding biases, questioning assumpJuly 59 tions, and identifying risks as well as opportunities.

AFTER WORK 02 THE FIC ORGANIZED ONLINE JUN CONFERENCE ON DIGITALIZATION The Foreign Investors Council organised today online Conference on Digitalization titled “Digitalization in Serbian Regulations: Possibilities and Limitations.” The event which gathered around 100 FIC members, initiated discussion between 15 representatives of the Government from the following 7 institutions: National Bank of Serbia, Ministry of Health, Ministry of Justice, Ministry of Finance, Ministry of Labour, Employment, Veterans and Social Affairs, Customs and Tax Administration, which showed the commitment of the state to cooperate with FIC on improving legal framework for digitalisation. The FIC chairpersons from Digital & E-Commerce, HR, Legal, Pharma and Tax Committees actively participated in the discussion.

12 POST-PANDEMIC RECOVERY: SLOW JUN AND FALTERING, BUT FEASIBLE Following the economic shut down as one of the measures to stop the spread of coronavirus, economies are slowly opening up. According to participants of a webinar organised today by the European Union Delegation to Serbia and the European Policy Centre, the speed of Serbia’s recovery will depend on the speed of recovery of its main trade partners, i.e. European Union Member States. Head of the EU Delegation to Serbia Ambassador Sem Fabrizi and President of the Serbian Chamber of Commerce Marko Cadez, who opened the webinar, agreed that the post-pandemic economic recovery of different countries is interdependent. “A swifter and stronger recovery in the EU—supported by unprecedented measures that are currently the topic of the EU leaders’ conversation in Brussels—will undoubtedly bolster the Serbian economy, especially through trade and investments.” Ambassador Fabrizi explained.

10 THE NOVAK DJOKOVIC FOUNDATION JUN DELIVERS MEDICAL EQUIPMENT The latest generation of scanner has arrived at the Clinic for Infectious and Tropical Diseases KCS. Thanks to the actions of the Novak Djokovic Foundation, which includes medical equipment donated to health institutions in Serbia, the Clinic for Infection and Tropical Diseases of the Clinical Center of Serbia is richer for state-of-the-art Siemens (CT) scanners with its additional equipment. The value of the donations is 300,000 euros, and the support through the Foundation for the Health System of Serbia is a continuation. The global director and co-founder of the Novak Djokovic Foundation, Jelena Djokovic, previously set up a scanner of the Ministry of Health, Dr. Zlatibor Loncar, at the Clinic for Infectious and Tropical Diseases KCS.

15 WEBINAR DIALOGUE JUN WITH CUSTOMS ADMINISTRATION The first in a row dialogue, Dialogue with Customs Administration, under the 4.0 dialogues initiative, which we are starting together with the colleagues from French-Serbian (Chambre de Commerce et d’Industrie France Serbie), GermanSerbian (Deutsch-Serbische Wirtschaftskammer (AHK Serbien) / Nemačkosrpska privredna komora (AHK Srbija)) and Italian-Serbian (CCIS Camera di Commercio Italo Serbia Belgrado) chamber of commerce with a goal of establishing a platform for continuous dialogue between the business representatives and official institutions, took place today. The participants had an opportunity to receive concrete answers to their questions directly from the Custom’s representatives, as well as to get more detailed information about potential novelties and future plans within its jurisdiction hint: digitisation is in focus!

July

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16 VORWERK STARTS JUN PRODUCTION IN SERBIA German car parts manufacturer Vorwerk & Sohn opened its factory in Preljina, near the city of Cacak, two years after breaking the ground for this plant. It is €60 million worth investment, which will employ around 1.000 people. This factory will produce components for cars of the Audi, Daimler- Chrysler, BMW, Bentley, Volkswagen, and Porsche. Vorwerk plant in Cacak has 45.000 m2 out of which 40.000 is the production area. At this point, the company has 175 workers here, and with the next phases, the number will rise to 1.000. The local government of the city of Cacak has invested several million euros in the construction of the utility infrastructure, electrical installations, and roads. The facility was opened in the presence of the President of the Republic of Serbia, Aleksandar Vucic, CEO Vorwerk Eldisy in Serbia Jurgen Moller, director Nenad Medenica and the Major of the City of Cacak, Milun Todorovic.

17 SERBIAN OBLACHINSKA CHERRY – A JUN CHANCE FOR CREATION OF NEW PRODUCTS Design company, with the support of USAID Competitive Economy Project, is organising the kickoff event to launch the Center for the Development of Products Made of Oblachinska Cherry. The mission of the Center is to support the development and promotion of high-quality and healthy products made of this fruit and the promotion of Serbian brand “Oblachinska Cherry” in domestic and international markets, that will add value to the product, and consequently lead to increased sales and exports. In the upcoming period, the Center will work on connecting all participants in the food processing chain, from primary producers, cold storage companies, processors to distributors, all with the goal to improve the quality of Oblachinska cherry at the earliest stage of planting and cultivation, to processing into high-quality products and their distribution in domestic and foreign markets.

24 CURRENT ISSUES JUN OF THE NEW CUSTOMS LAW

MARKO ČADEŽ, PRESIDENT OF THE CHAMBER OF COMMERCE AND INDUSTRY

Slovenian Business Club and Croatian Business Club with the support of the Serbian Chamber of Commerce hosted representatives of the Customs Administration of Serbia at the seminar “Current issues of the new Customs Law”. The introductory speech was given by the presidents of the Slovenian Business Club, Danijela Fishakov and the Croatian Business Club, Marija Radulović. In their address to the audience, the representatives of the Customs Administration briefly presented the Customs Administration itself, their organisation, goals, mission and vision. In their further presentation, they explained the changes that occurred in the new Customs Law and gave an interpretation of the same. There were changes related to the transit procedure, simplified customs procedures and other relevant issues.

17 CREATED IN SERBIA: NEW PROJECT OF JUN THE SERBIAN CHAMBER OF COMMERCE The Serbian Chamber of Commerce has launched a new initiative “Created in Serbia”, aimed at supporting domestic products and producers, as well as strengthening consumer awareness of the importance of buying domestic products. Companies that want their products to bear the “Čuvarkuća” stamp can apply to the Serbian Chamber of Commerce from 16 June. “Created in Serbia is an action by which we want to raise awareness of our responsibility, of what we are actually doing by buying one product. “What we buy with the ‘guard house’ stamp means not only that the product was created in Serbia but that it is made from the best we have and that such a product contains the value of our work, ideas, creativity, design, innovation, domestic materials and raw materials,” said Marko Čadež, President of the Chamber of Commerce and Industry, presenting the project at the Ethnographic Museum.

DANIJELA FISHAKOV (LEFT) AND MARIJA RADULOVIĆ (CENTER)

July

AFTER WORK

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24 WEBINAR DEDICATED TO ECONOMIC JUN COOPERATION BETWEEN SERBIA & ITALY On Wednesday, 24 June, a webinar dedicated to the economic cooperation between Serbia and Italy was held, with a special focus on the opportunities for business development offered by the Serbian market, as well as the market of the Western Balkans. The webinar was opened by Ambassador of Italy to Serbia H.E. Carlo Lo Cascio, who said: “The large presence of Italian companies in Serbia remains a pillar of the strategic partnership between Serbia and Italy.” The webinar was organised by Confindustria Serbia and GreenHill Advisory, in cooperation with the Italian Embassy in Belgrade and Guglielmo Marconi University in Rome.

IWC PRESIDENT MILICA LUNDIN

29 INTERNATIONAL WOMEN’S CLUB MAR COFFEE MORNING Members of the International Women’s Club hosted a coffee morning event on 25 June. The event held at the Beton Hall gathered a large number of members to the first coffee morning since the pandemic spread. Ladies, headed by IWC President Milica Lundin, enjoyed lovely weather at one of the cafes overlooking the river.

25 BEO SHOPPING CENTER OPENS THE JUN SIZE OF 20 FOOTBALL FIELDS MPC Properties, region’s largest real estate development company officially opened BEO Shopping Center on the corner of Vojislava Ilića and Mis Irbijeve streets in Belgrade, the total value of investment exceeding EUR 110 million. The Center covers an area of over 130,000 square meters, and its offer comprises of more than 130 global and regional brands. The shopping centre stands out with its innovative architectural concept following the latest global retail trends with more open surfaces, wide corridors, plenty of natural light and greenery, and a true market novelty is also that the renowned German fashion brand Peek & Cloppenburg opened its first store in Serbia here in BEO Shopping Center.

INGO NISSEN, CEO OF MPC PROPERTIES

July

27 EMBASSY OF INDIA MARK THE JUN INTERNATIONAL DAY OF YOGA The Embassy of India in Belgrade in coordination with the City of Belgrade, yoga centres and instructors, organised a celebration of the sixth International Day of Yoga affirming yoga as a means to help fight against coronavirus, social isolation, depression and boredom. Ambassador of India H.E. Subrata Bhattacharjee declared the event open in front of the Belgrade City Hall. In the context of the current coronavirus pandemic, Ambassador Bhattacharjee noted that since it will take some time before the world develops a vaccine, we must all remain vigilant, and yoga can help us stay healthy, calm and connected while keeping social distance. The outdoor yoga practice in Belgrade brought together around 200 participants with strict social distancing. Participants included diplomats, senior government officials, yoga instructors, practitioners and yoga lovers. Since this year the International Day of Yoga coincided with the parliamentary elections in Serbia, celebrations have been moved to 27 June, and apart from Belgrade, held in 17 towns across the country, including Novi Sad, Šabac, Zrenjanin, Kragujevac, Loznica, Smederevo, Vršac, Pančevo, Subotica, Apatin, Jagodina, Smederevo, Kovin, Sombor, at 21 venues from 21 to 28 June.

Partner

FRANCE - SERBIA 2020

FURTHERING ECONOMIC TIES H.E. Jean-Louis Falconi, Ambassador of France to Serbia ● Dragoljub Damljanović, President of the FrenchSerbian Chamber of Commerce, CCIFS ● Sanja Ivanić, CCIFS CEO ● Manuel Bouard, Director of the French Institute in Serbia ● Vladan Čokić, Director, Bureau Veritas ● Priscilia Dubocage, Managing Director of Total HUB Balkans ● Marina Cvijanović, Financial Manager, Eko Bio Invest ● Mirjana Lučić, General Manager at Weber SRB, BiH, MNE ● Dragan Milić, Key Account Manager, LGCF ● Ksenija Karić, CEO, Schneider Electric Serbia and Montenegro Ltd.

PARTNER

CONTENTS

05 06

ADAPTATION ON THE GO COMMENT

THERE ARE NO QUICK FIXES, DIALOGUE IS NECESSARY

H.E. JEAN-LOUIS FALCONI, AMBASSADOR OF FRANCE TO SERBIA

15 16

CERTIFICATION IS KEY TO NEW MARKETS

VLADAN ČOKIĆ, DIRECTOR, BUREAU VERITAS

IT IS IMPORTANT OUR MEMBERS KNOW WE’RE ALWAYS HERE FOR THEM

22 24

WE’RE GROWING QUICKLY AND EFFICIENTLY

MIRJANA LUČIĆ, GENERAL MANAGER AT WEBER SRB, BIH, MNE

THE SERBIAN YOUTH IS OUR PRIORITY

SOMBOLED - A SYNONYM FOR SUCCESSFUL COOPERATION BETWEEN SERBIA AND FRANCE IN THE DAIRY INDUSTRY SOMBOLED

CCIFS ACTIVITIES

32 34

HOW BELGRADE HAS BEEN DECORATED

MANUEL BOUARD, DIRECTOR OF THE FRENCH INSTITUTE IN SERBIA

SANJA IVANIĆ, CCIFS CEO

WE MUST HELP EACH OTHER EXIT THE CRISIS

DRAGOLJUB DAMLJANOVIĆ, PRESIDENT OF THE FRENCH-SERBIAN CHAMBER OF COMMERCE, CCIFS

10 YEARS AND COUNTING

WASTE AS A TOP RAW MATERIAL

PRISCILIA DUBOCAGE, MANAGING DIRECTOR OF TOTAL HUB BALKANS

MARINA CVIJANOVIĆ, FINANCIAL MANAGER, EKO BIO INVEST

EDITOR IN CHIEF Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com DESIGN Jasmina Laković j.lakovic@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen mrpeditorial@mail.com

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COMMENT

Adaptation On The Go Crises like the Coronavirus pandemic sometimes lead to the emergence of real heroes, and sometimes completely strip bare someone's mutual relations. Judging by what we've had an opportunity to see so far, Covid-19 has certainly changed the way bilateral relations unfold, but not the essence of the cordial and increasingly fulfilled relations between the two countries

significant jubilee was commemorated in Kragujevac in March last year, with senior officials of the two countries attending the 180th anniversary of the establishment of French-Serbian diplomatic relations. This year’s Days of Francophonie, which take place in March, were postponed for health security reasons. This is just one illustration of the way in which Covid-19 influences diplomatic relations between the two countries, if not their essence, then certainly their manifestation. As the French ambassador noted in his interview with CorD, at the time of the outbreak of the pandemic those relations were primarily fortified through the signs of the EU’s commitment to Serbia’s health needs. With the normalisation of the situation, the focus returned to the key topics of European integration, and the dialogue between leaders in Belgrade and Pristina was accelerated immediately after the elections, as an important section on the road to the EU. Likewise, reform issues that Serbia has not yet completed, such as the rule of law and the establishing of full freedom of public expression, have made it onto the agenda. In the period prior to the pandemic, Serbia and France intensified their bilateral cooperation, culminating in the arrival of the highest French officials in Serbia, and then the initialling of several large French investments in Serbia, which are progressing despite the quarantine. At this moment, it is difficult to imagine when and to what extent it will be possible to restore that upward momentum observed in the development of economic relations between the two countries over

the last few years. The trade exchange, for example, doubled between 2012 and 2019, but it’s difficult to predict how it will adapt to global turbulence and the dynamics of economic trends in France and Serbia. However, a very positive sounding fact is that the dialogue between the Serbian government and business community has been preserved, and that the dialogue between the state and the economy came at the initiative of the FrenchSerbian Chamber of Commerce and resulted in a broad set of measures to preserve the economy. The focus is on preserving companies in the country, primarily small and medium-sized enterprises, which include many members of the French-Serbian Chamber of Commerce. It is also too early to speculate whether, following the risks faced by companies with widely diversified production chains, foreign companies (including French ones) would prefer to choose markets that are closer to them and thus establish their production here. However, this does not diminish the relevance and importance of implementing measures to improve the business climate and especially digitalisation, which has saved many companies from major disruptions in operations. There is no doubt that, for a while at least, talks and mutual meetings in the business world, and in cultural and scientific exchanges, will be largely supplemented by online content. For example, anyone who scans the pages of the French Institute in Serbia will be able to see that fans and admirers of the French language are offered numerous online language-based and cultural content, and that such a situation has actually created an opportunity for Serbian citizens to enjoy studying France’s cultural heritage or learning the French language online.

Following the issue of humanitarian aid during the most pronounced health crisis, the agenda has again returned to open issues of European integration, while economic cooperation will be largely dictated by the situation in the world economy

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INTERVIEW

H.E. JEAN-LOUIS FALCONI, AMBASSADOR OF FRANCE TO SERBIA

There Are No Quick Fixes, DIALOGUE IS NECESSARY The EU is not in a position to demand that Serbia recognises Kosovo, since several Member States have not recognised the independence of Kosovo. I would therefore say that, in order to enter the EU, Belgrade and Pristina should fully normalise their relations. The recognition of Kosovo is but one option to reach this goal. When it comes to France, any comprehensive, mutually acceptable option that leads to regional stability is acceptable â&#x20AC;&#x201C; Jean-Louis Falconi

ith the first anniversary of his term in Serbia approaching, the French ambassador says that his goal is to bring Serbia closer to France by opening a new phase in bilateral cooperation, based on the historical friendship that developed during World War I. According to Ambassador Jean-Louis Falconi, speaking in this interview for CorD Magazine, Paris is ready to provide support in all areas â&#x20AC;&#x201C; from the dialogue with Pristina and the European integration process, to the development of projects for the long-awaited Belgrade metro.

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CHALLENGE

CORONAVIRUS CRISIS

METRO

The challenge is now to find a good balance between preserving the health of citizens and boosting the economy

The EU Commission answered Serbia’s call for help, providing €93bn in short and long term help

It’s a long story indeed, but I’m confident the Belgrade metro will ultimately see the light of day

Your Excellency, you spent just two months of your first year in Serbia resident in Belgrade before the lockdown due to the struggle against Covid-19 – a fact that you’ve written about very often on social networks. From today’s perspective, how do you see the struggle against the pandemic, which also hit France hard? - Since I arrived in September 2019, I had a good six months of “normal life”, during which I was acquainted with my counterparts and started discovering Serbia. From today’s perspective, I would say that the Coronavirus crisis took almost every country in the world by surprise and created a health, economic and social shock. The last pandemic of these world proportions dates back to 1918-1920 - the “Spanish flu” - and the world back then was in no way comparable to ours. As we all know, our biggest issue at first was to produce enough safety kits and “flatten the epidemiological curve” to unburden our health systems. I am, however, impressed with the capacity of our societies and citizens to adjust to social distancing, work from home and the use of new technologies, even for international summits. I would also like to hail the capacity of people and communities to unify and show solidarity, even at the grass roots level. From this point of view, the ways to tackle the health challenge are comparable between Serbia and France. This being said, the challenge is now to find a good balance between preserving the health of citizens and boosting the economy. This is the toughest call for authorities. The EU provided an unprecedented protective shield for its citizens. Given that you are educated as an economist and have worked in the area of finance in both the French administration and the EU Directorate, do you believe that the world is entering an economic crisis following the Coronavirus pandemic? - The world has certainly entered a deep economic crisis. It is still difficult to understand how deep it is and what our capacity to overcome it is. According to the IMF, all countries in the world are now confronted by the unknown. According to the IMF, the spectacular amount of €7,000bn was mobilised, around the world, to counter the effects tof he Covid-19 crisis. Overall, the IMF foresees a 5.2% drop in global GDP.

This being said, the situation will obviously depend on the leading economic sectors of each country, the strength of their economy, their dependence on external markets. The situation will also vary from sector to sector within the same country. Restaurants, real estate, industries, small businesses and commercial activities, which rely on people-to-people contacts, will undoubtedly be impacted, while many services and the IT

world will find new resources for development. All in all, this crisis will certainly deepen inequalities, while generating deep poverty in already fragile countries. But I am certain that the world’s stability would benefit from coordinated, cooperative and multilateral answers. Believing that one could gain over the other would be a blind and short-term vision. Do you believe that the EU’s measures, which include a large financial aid package for member states and the countries of the Western Balkan region, will be sufficient to ensure economic difficulties don’t escalate into a large-scale crisis? - At these moments we deeply appreciate being part of the EU. Several economic sectors are deeply impacted in France, such as tourism, industry, culture and gastronomy. Measures are being taken by French authorities to support firms and independent workers. EU solidarity is more than welcome in this context. €540bn was deployed on EU budgets in support of the economies of member states. The Central European Bank shall also repurchase the debt of Eurozone companies up to the €1,350bn, within the Pandemic Emergency Purchase Programme, which is a very big push for these companies. Last but not least, the EU Com7

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mission proposed a new recovery and resilience facility of 560 billion euros, including a grant facility of 310 billion euros, on the basis of a very innovative proposal from France and Germany, and 250 billion euros available in loans in order to boost economic reforms and private investments. We hope an agreement will be reached in July, between the 27 EU member states. The Western Balkans will be the first beneficiaries of EU solidarity outside the EU itself. The EU, EU member states and

financial institutions are the biggest donors to Serbia, with over €3bn in non-refundable aid to Serbia during the past 20 years. To tackle the Coronavirus crisis alone, the EU Commission answered Serbia’s call for help, providing €93bn in short and long term help. This is by far the largest foreign aid to this country. Will this be enough? I don’t know, but this aid is very significant and comes in addition to efforts already undertaken by the Serbian Government.

Inhabitants of the Western Balkans are wondering whether the idea of expanding the EU to encompass this region would materialize at all. In this context, they are slightly worried by the EU’s messages, such as the latest one contained in the Zagreb Declaration that mentions the ‘prospects’ of membership but not enlargement specifically. Do they have reason for suspicion? - The idea of expanding the EU to encompass the region is viable; it remains an EU objective since the Zagreb summit in 2000 and the Thessaloniki summit in 2003, provided the authorities are willing, locally, to take on board the necessary reforms. A promise was made in Thessaloniki in 2003, the EU and EU member states actively support the Western Balkans in its reforms, with funding, advisors and experts. In Serbia, considerable efforts were exerted in the sphere of the economy, finance and norms. At the same time, there is still a lot to undertake in terms of the rule of law, freedom of media, the fight against corruption, independence of the judiciary and institutional processes. Efforts to improve the legislation are appreciable, but the EU also focuses on the implementation of the measures taken. In parallel, the EU is undertaking reforms to become strategically more independent, stronger and more relevant, both internally and on the international scene. This will remain to the benefit of Serbia when it enters the EU and is certainly not aimed at preventing or delaying the integration of the Western Balkans into the EU.

The Western Balkans will be the first beneficiaries of EU solidarity outside the EU itself. The EU, EU member states and financial institutions are the biggest donors to Serbia, with over €3bn in non-refundable aid to Serbia during the past 20 years

At the height of the struggle against Covid-19, footage was broadcast from France and Italy showing the removal of EU flags from public places, due to citizens reportedly being dissatisfied with the lack of pan-EU solidarity. The first aid to arrive in Serbia actually came from China. Do you believe that the pandemic has led to lasting changes in the positions of the EU, China and even the U.S. on the global scene? - Some footage was reported, here and there - but actually not in France - of people removing EU flags from public places, but this needs to be put into context: the unknown that we entered into created fear and panic, particularly at the beginning of the crisis, multiplied by the attraction of social media for sensational images. 8

Let us stick to facts. China was the first country hit by the Covid-19 epidemic, in December. Back then, EU countries, including France, sent aid and equipment to Wuhan. By 1st February 12 tonnes of equipment had been sent to China by EU member states. When Europe was hit in its turn, it needed to organise itself urgently to confront the situation domestically. In March, China had at the time more knowledge, experience of the crisis and more resources, allowing the country to send immediate help and we are all thankful for that. China was reactive in early March and sent aircraft to Serbia, which is a good thing. The first European aid started arriving only a week later, despite the EU being in the midst of a sanitary crisis, and it was massive. Serbian citizens need to be informed of the full story. If they are, it is difficult to infer from that any lasting change in international support to Serbia.

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You have stated that EU membership candidates must meet all the preconditions and that there will be no lowering of the criteria. When it comes to Serbia, the most common question is whether the country can become a member state if it doesn’t recognise Kosovo’s independence? - Technically speaking, the EU is not in a position to set such a precondition, since several Member States have not recognised the independence of Kosovo. I would therefore say that, in order to enter the EU, Belgrade and Pristina should fully normalise

their relations. The recognition of Kosovo is but one option to reach this goal. When it comes to France, any comprehensive, mutually acceptable option that leads to regional stability is acceptable. As a matter of fact, entering the EU with unsolved internal or regional issues is not possible. The EU’s DNA is based on reconciliation between neighbours.

No one can be forced to sit at the table… There are no quick fixes, but I believe the halted dialogue can resume at a good pace. A consensual agreement would be in the interest of both parties, frozen conflicts are a source of lowkey instability and mistrust

Although Miroslav Lajčak, the EU’s envoy for the dialogue between Belgrade and Pristina, allegedly stated in one address to European diplomats that reaching an agreement is a matter of months away, and not years, there is still actually no dialogue, nor does its renewal appear to be on the horizon. How would you comment on this? - No one can be forced to sit at the table. Until now, the authorities in Pristina were bogged down in a post-electoral political crisis and there are new recent developments. Let’s focus on the positive: the Hoti-led government was approved on 6th June and lifted reciprocal measures the same day, which is very significant. There are no quick fixes, but I believe that at some point, the halted dialogue can resume at a good pace. A consensual agreement would be in the interest of both parties, frozen conflicts are a source of low-key instability and mistrust. Miroslav Lajčak is a seasoned diplomat who is profoundly 10

dedicated to his tasks. He spoke to all of the stakeholders in Belgrade and Pristina, in order to have a comprehensive vision of the situation. Of anyone, I believe he is the right person to facilitate the dialogue and find a compromise. The EU has a special role to conduct this dialogue and EU leaders entrusted him with this mission. I take it as a positive signal that he believes he can accomplish it. But everyone knows that the normalisation of relations between Belgrade and Pristina can only happen with the consent of the parties themselves, with the full support of the international community at large. Is Paris still interested in hosting a meeting between leaders from Belgrade and Pristina aimed at reviving the dialogue? - Paris is indeed interested in hosting such a meeting, in the wake of the Berlin Summit which took place in April 2019. French and German ministers of foreign affairs, Jean-Yves Le Drian and Heiko Maas, reiterated their commitment to facilitate the EU-led dialogue in a joint article published in Belgrade and Pristina on 23rd May. German Ambassador Thomas Schieb and I also conveyed this message to Marko Đurić, director of the Office for Kosovo, in May.

How do you view the assessment of Nathalie Loiseau, a former French minister for European affairs and current MEP, and her colleagues from the ALDE group, who stated that it would not be possible for elections in Serbia to be fair and democratic due to “unbalanced media reporting and increased pressure on individuals” who are critical of the government? - The fact that Nathalie Loiseau and fellow European MPs co-signed a letter on the electoral conditions in Serbia shows their interest in Serbia and its political path. It also shows the keen interest of European elected representatives in the rule of law, in particular in countries seeking to join the EU. Media pluralism, but also hate speech, insults and defamation in the press are still an issue in Serbia, and this was noticeable in the pre-electoral process. An inter-party dialogue was facilitated last autumn by the European Parliament and is hopefully set to resume after the elections. In one interview in which you spoke of your plans as ambassador, you said that relations between France and Serbia should not be based solely on history and the memory of

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the fraternal links from World War I. What is required in order for you to be able to, as you stated, “open up this region” towards the French? - Our brotherhood in arms, a century ago, remains one of the foundations of our friendship today. Hundreds of thousands of lives were lost and the sacrifices made then are still vividly remembered. But we should also build our future. This was President Macron’s main message to Serbia when he visited Belgrade a year ago, on 15th and 16th July 2019. He pledged a renewed political engagement of France alongside Serbia, including on its European path. Our political dialogue is back on track: in April 2018, Jean-Yves le Drian was the first French minister of foreign affairs to visit Serbia in eight years. President Macron’s visit was the first presidential visit in … 18 years. This visit opened new scope for cooperation, with the signing of about 20 agreements. Such events are mediated and contribute to revitalising our bilateral relations at all levels. Stronger economic ties shall also contribute to bringing our countries closer together. Our economic relations have not reached their full potential, but represented €1bn in 2019, which is twice as much as in 2012. There are about 120 French companies in Serbia: this means a lot for the French business community. Most of these companies are happy about their conditions in Serbia and publicise that at home, thus attracting other companies. French businesses are engaged in very significant projects, such as the Vinča waste management project, or the management of the Belgrade Airport. Last but not least, the French Agency for Development, which supports urban and sustainable infrastructure projects, has been engaged in the Balkans since September 2019, its regional HQ being based in Belgrade. People-to-people contacts are also a very powerful way to bring two countries together. French is not considered as a “business language”, like English or German, but 110,000 children and adults are learning it. Let’s hope that, as economic ties grow, more youngsters will turn to French. French tourists find a greater interest in Serbia than before. 35,500 French tourists visited Serbia in 2019, which is 7,000 more than in the previous year.

- The momentum is very much still here. Since my arrival, several ministers and parliamentarians came to meet their counterparts in Belgrade, to establish or deepen cooperation. The atmosphere and energy is very positive. Many projects are underway, despite the Covid-19 crisis, which suspended all of our activities from March to May. Life is gradually coming back, but the pandemic is not fully behind us. Most of the administrations in France still partially work from home. We’ll therefore have to be

Paris is ready to provide support in all areas – from the dialogue with Pristina and the European integration process, to the development of projects for the long-awaited Belgrade metro

Following the visit to Serbia of French President Emmanuel Macron, it seemed that bilateral political and economic relations would gain new momentum. How do we stand today; is this process again losing pace?

a little patient before organising new ministerial visits.

You’ve inherited one question from a large number of your predecessors as French ambassador. We asked all of them if the French will build a metro rail system in Belgrade? Do you know the answer? - It’s a long story indeed, but I’m confident the Belgrade metro will ultimately see the light of day. In May I signed with the Serbian government an agreement according to which French experts and companies immediately start the feasibility study for the metro of Belgrade and finalise it in 2021. France is very dedicated to this project, for which my government donated €8.3 million to Serbia. How would you comment on the fact that companies from China, Turkey, the U.S., Russia and Azerbaijan are more heavily engaged in major infrastructure projects in Serbia than French companies? - I do not have particular comments to make. Serbia is on the EU path, but that shouldn’t stop it from diversifying its economic partnerships. This being said, I can only speak of what I know: France has technology and knowhow. It promotes EU standards, which are secure, sustainable and long-lasting. 11

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INTERVIEW

DRAGOLJUB DAMLJANOVIĆ, PRESIDENT OF THE FRENCH-SERBIAN CHAMBER OF COMMERCE, CCIFS

We Must Help Each Other EXIT THE CRISIS

The prospects of the economy in Serbia will depend greatly on the recovery of the economy in the EU, and there's not much we can do about that. However, experiences during the pandemic showed us that we need to further adjust various regulations and insist on maintaining a spirit of cooperation and empathy, particularly towards those most hit by the crisis

he crisis will pass, but it is important to show that we are human, to take care of each other and to save businesses, says Dragoljub Damljanović, president of the French-Serbian Chamber of Commerce (CCFS). Judging by experiences from the period of the pandemic, this will prove challenging for companies from all sectors and will require a relatively long time to adjust. How do your members evaluate their positions the “day after” the pandemic? - Members were confronted by a very difficult situation, when business activities were reduced to a minimum and it was difficult to maintain operations at all and not lay off employees. The state of emergency has been revoked, but I don’t expect everyone to start working at full steam before the second half of the year. Depending on the sector of business, companies are aware that needs will increase significantly in many segments and that they should be ready to satisfy those needs. On the other hand,

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some will need more time to make up for what’s been lost. It has so far been shown that there is more resilience among those companies that have diverse supply chains providing them with more options, but it is clear that business models themselves will change to a greater or lesser extent, and very few companies will be in the zone where there are no changes. However, the most important thing is for the business community to strive to help small and medium-sized enterprises that have been hardest hit by this crisis. In your opinion, is the Serbian government succeeding with its measures to keep pace with the new challenges to the functioning of the economy? - I consider the measures to support the economy as being satisfactory, but there was initially a lack of technical implementation and documents on how to apply them. What is also lacking is greater flexibility in the Labour Law, in order to allow employees to work partly or to be temporarily unemployed for a longer period without being laid off, thus increasing the percentage of job retentions. However, we must take into consideration that the actual recovery of the economy itself will depend on the recovery of the economy in the European Union and the recovery of foreign demand, which we cannot influence with our own instruments of economic policy. Serbia is facing both economic and unresolved health problems, and we hope that there will be another package of measures to help the economy following the elections.

organisation sector for members and partners, which is vitally important to the Chamber. However, the Chamber succeeded in adapting to the new organisation of work from home and the organising of online gatherings. This type of gathering certainly marked the three months behind us, and will undoubtedly mark the coming months. The Chamber continues to work towards holding online conferences, training courses and workshops in the period ahead, and we hope that we will be able to return to the organisation of physical events as of the coming autumn. The second sector of the Chamber’s activities - providing support to French companies interested in the markets of Serbia and the surrounding countries - is also one in which we will actively work by participating in online B2B meetings and sector specific presentations. The number of inquiries we receive has reduced, but we hope that companies will again start to be interested in Serbia in the second half of the year.

Serbia is facing both economic and unresolved health problems, and we hope that there will be another package of measures to help the economy following the elections

How did the newly emerged situation impact on the development of dialogue within the business community and with state bodies? - The new situation led to strengthened dialogue within the business community, in order to find a common solution as quickly as possible. The Chamber launched an initiative in the second half of March to send a request to Finance Minister Siniša Mali, and twelve business association partners joined our initiative within 24 hours. This testifies to the business community showing unity with the aim of applying for the swiftest possible implementation of economic measures to help the economy. Through a large number of online gatherings and dialogue with the government and state officials, the economy maintained a constant dialogue, and business associations like our Chamber have likewise played an important role as a link between members and representatives of institutions by organising webinars and online conferences. One of the strategic priorities of the CCFS is to establish a continuous dialogue with representatives of institutions, and at the end of June, together with partner associations, it is organising a dialogue with the Customs Administration.

In your opinion, will the pandemic contribute to accelerating the digital transformation of the Serbian economy and increase the volume of remote work? - What is already underway is the transformation of business, with consumer habits changing, all industries that are able to be online in technology, management, customer relations set to try to continue to work in that way. This event has accelerated that which would have happened over the course of a few years, because now it isn’t only that companies which previously didn’t even consider organising work from home have started to do so, but also that citizens are finding new applications that they haven’t previously tried and that can help them in their daily lives. I’m delighted, for example, with the way small farmers began to organise into e-markets and continued to operate despite the pandemic. When this period is over, it will be a new period for the world economy, and digitalisation will be accelerated in all business sectors. However, we shouldn’t forget that there are things that can’t be done online; human contact is irreplaceable, the efficiency of group work in a limited space is much better compared to when we sit in front of computers alone. Digitalisation and physical presence are complementary.

How have these changes impacted on the reorganising of the CCIFS’s working priorities in 2020? - The pandemic hit hard when it comes to the corporate event 13

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In terms of infrastructure, how ready is Serbia to support the relocating of parts of business to the online world? - If operations have slowed down in some spheres, a large number of companies haven’t abandoned ongoing processes of digital transformation during this period, while every third company has even accelerated digital projects. This is most evident in online trade and remote working during the crisis caused by the pandemic, both around the world and in Serbia. One of the govern-

ment’s priorities is the accelerated digitalisation of public services, so now we often talk about how it will soon be the case that, for example, all requests in cadastral records will be submitted and scheduled via the internet. This testifies to the desire for digitalisation to be implemented in all segments of the economy and society. This is a journey that will take time, but we can already see that a large percentage of traditional companies plan to introduce new digital transformation projects, primarily with the development of new digital products, cooperation with start-ups and other innovative companies, improving the user experience or existing digital products.

dertaking all necessary health measures prior to people returning to work, such as masks, gloves, disposable barriers, disinfections of all surfaces etc. We still don’t have precise information in order to be able to quantify what the additional labour costs will be in that sense, but they are certainly not negligible. Considering that companies with localised production have been shown to have sustained less damage than those with globalised supply chains, do you expect such experiences to influence interest among French investors in relocating part of their operations to Serbia? - It is clear that this crisis will lead all economies to reconsider their strategic goals and directions, and it seems that it’s necessary for some key production areas to be located closer to Europe. There is also a chance for Serbia. It is certain that the pandemic will have consequences for bilateral French-Serbian relations, in the form of reduced economic activity in our countries, but we are witnessing an increase in French investments in Serbia year on year, and I’m sure that investors from that country will increasingly recognise the potential of Serbia and the relocating of part of their operations. The French government, through its plan for emergency situations that provides support to export companies confronted by the immediate consequences of the crisis, has secured their cash flow and ensured their international recovery after the crisis, which provides hope that investments will also continue at this pace in Serbia.

The economy maintained a constant dialogue with representatives of the government and state bodies during the pandemic, and business associations like our Chamber played an important role as a link between the two sides

How do your members estimate labour costs considering the new types of protection measures against the pandemic? - Companies have adapted to the crisis in various ways through the organisation of partial work from home and reducing the number of working hours, while a few had to close parts of business processes. Some companies managed to quickly change their way of doing business, which indicates that those companies were more ready to face the crisis. Most of our members continued to perform their activities through work from home, while production companies duly met the requirements for obtaining work permits during curfew. Members inform us that their companies are un14

Does the newly emerged situation create space for companies to redirect towards research and development? Do the Serbian Government’s measures in this domain encourage such trends? - This situation certainly opens the way for various research and development programmes, primarily in the field of digitalisation, but also in other sectors. Serbia has all the conditions, experts, good colleges and places for research, and I believe that the number of such places will only increase. Testifying to this is the opening of science and technology parks and digital education, all of which lead to Serbia becoming a country recognised for creating new technologies. Some government measures in this direction include the reducing of the tax on profits generated from the income of intellectual property developed or mostly developed in Serbia from 15 to three per cent. This measure is certainly one of the reasons why development companies are relocating their development centres to Serbia.

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VLADAN ČOKIĆ, DIRECTOR, BUREAU VERITAS

BUSINESS

Certification Is Key To New Markets Bureau Veritas is a leading company specialised in international certification, verification and testing that was founded in 1828 in Paris and opened its office in Serbia in 2005. It operates today in more than 140 countries, employing 77,000 experts in more than 1,400 offices and 330 laboratories

ompanies in Serbia have recognised the value and importance of harmonising with criteria related to quality, safety, environmental protection, energy efficiency and social responsibility, because that is an indicator of their strength. Are all your services designed on the basis of the specific needs of clients, and who are they? - Bureau Veritas provides the following services: certification of management systems, testing, inspection and certification of products, process quality assurance for industrial facilities and equipment, inspections of construction facilities and equipment, as well as inspections and laboratory testing. Services are always tailored to a specific activity and tee specific needs of clients, in terms of the added value that they expect. That’s why we also help clients with training, which is specially created according to the specific characteristics of their business. Our auditors, inspectors and lecturers have extensive knowledge and experience in the field of our clients’ businesses - choosing the right people, professional and experienced, is very important for the successful provision of services. Testifying to how much we care about the needs of our clients is the new service - Restart your business. It was developed as a result of the Covid-19 pandemic in order to provide confirmation that a client has taken all preventative measures and thus ensured a safe and healthy business environment.

environmental protection and social responsibility? - The industrial sector is largely harmonised with EU regulations and standards, because Serbia is adopting EU standards in their original form, thus avoiding the creation of “technical ambiguities” during the interpretation of standards. In agriculture and the food industry, standards and guidelines are largely aligned with EU regulations when it comes to the quality and safety of food. Our cereals and food industry products are exported and have their place on EU markets. In addition to them, engineering and software companies have a large presence, as do service activities, but we have long had clients in almost all areas of the economy.

Our clients are both multinational and local companies, as well as small and medium-sized enterprises, and we also provide services to state institutions

Which industries are harmonised with EU regulations and standards to the greatest extent? In which industries do you see the most respect for criteria related to quality, safety,

How does the fact that a company has all the necessary certificates and all the envisaged quality standards impact on its competitiveness? - Certification is a way for our clients to show that their management systems are harmonised with internationally recognised standards, i.e. with good business practice. Certification always means a greater competitive advantage, because it demonstrates the willingness of a company to invest in better business, showing the company’s strength and its clear commitment to continuous improvements. There are several important certificates that ensre easier entry into some markets, as well as excellent competitiveness. Here we are primarily referring to certificates from GFSI programmes (IFS, FSSC 22000, BRC, GLOBALG.A.P.), IP Programmes and ISCC certificates, and more recently Danube Soybean certificates. Certification is not only a recognition given by an independent certification house, but also leads to better operational and financial results through the constant improving of processes in an organisation. 15

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INTERVIEW

SANJA IVANIĆ, CCIFS CEO

It is Important Our Members Know WE'RE ALWAYS HERE FOR THEM With good internal organisation, we've succeeded in being available to members at all times, and that will be the same in the future

overcome the newly emerged situation as easily as possible, through joint actions, initiatives and solutions. It is important members know that we’re always here for them,” says Ivanić.

ven prior to the declaring of a state of emergency in Serbia, we realised that the global health crisis would impact on the operations of our members and partners in Serbia. That’s why we reacted very quickly and took certain actions to forward requests to the Government and ministries to take into account the difficulties faced by companies, especially small and medium-sized enterprises, says Sanja Ivanić, CEO of the French-Serbian Chamber of Commerce (CCIFS). SMEs comprise a large percentage of CCIFS members, while they represent the backbone of the Serbian economy and it is vitally important for us to fight for the support of these companies and help them to overcome this difficult period. Our action of sending requests to the Minister of Finance was joined by twelve other bilateral associations in Serbia in a short period of time, because they recognised the importance of this initiative, says our interlocutor. “Under the slogan ‘How can we help you?’ we attempted during the pandemic to organise as many useful online conferences, webinars and club meetings as possible, in order to

Which needs do members most often cite when addressing you today? - During the strongest wave of the Covid-19 virus, at the end of March and during April, our members contacted us with various inquiries, the majority of which were related to imports and exports, blockages at borders, tougher customs procedures at EU entry points and obtaining work permits for workers during the police curfew. At the moment members are very interested in whether there are certain restrictive entry and exit measures still in place between Serbia and EU member states, as well as imports and exports. Business meetings and networking are also an important part of our activities, and members ask us when they will be able to start holding meetings in the flesh. How has the rise in digital forms of communication impacted on the work of the CCIFS? Has it caused a change in your communication with members and regarding other Chamber activities? - Digitalisation has been a priority of French chambers of commerce abroad for several years now. The global platform that connects members was launched two years ago and is used by an increasing number of members for maintaining contacts with companies worldwide. All our chambers are also users of the zoom platform, so this way of working wasn’t strange to us. The Chamber was very active during the state of emergency and informed members about the situation in Serbia, but also in France, via regular email-based communications. All our regular activities (members’ meetings, sector-specific clubs,

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conferences and presentations) were organised fully online and completely free of charge, in order for us to provide members with verified and essential information at the right time. Our team also performed all of its activities from home and was available to members at all times. What do you consider as a key strength of the Chamber that manifested during Covid-19? - I’m particularly pleased with the speed at which we reacted in a crisis situation – already on the first day of the state of emergency, following consultations with members from the ranks of small and medium-sized enterprises, we wrote to Finance Minister Siniša Mali requesting assistance measures for SMEs. And the key strength of the Chamber that came to the fore during the Coronavirus period was primarily the team spirit of all employees, who worked industriously during the state of emergency to ease the operations of members through sector-specific meetings and the organisation of webinars. Thanks to being part of the large network of French chambers of commerce abroad, our Chamber organised regional webinars on the topics of agriculture, transport and logistics, and energy, with French chambers of commerce based in the countries of Central and Eastern Europe. These webinars enabled members to see how companies in the region confronted the pandemic, compare experiences and hear the opinions of experts and representatives of institutions.

gressing, and works on the modernisation and expansion of the airport are unfolding without major delays. What will French Week look like this year? - I sincerely hope we’ll have a more stable health situation in the country in November and that it will be possible for us to organise French Week, as we are accustomed to doing. French Week will be opened with the traditional welcoming of Beaujolais Nouveau young French wine, in the presence of the Ambassador of France and members and partners of the Chamber. I believe this will be an opportunity for us to gath-

One of our priorities is also the presenting of Serbia and its economic potential to French companies, which we realise successfully through online B2B meetings and conferences with the network of French chambers of commerce abroad

Several important agreements concerning the economy were signed during 2019, while new projects were also launched. How will the new development of the situation influence the dynamics of these activities? - Last year was of special importance for French-Serbian bilateral relations, because it was marked by the visit of President Macron and because that occasion saw the signing of numerous agreements between Serbian and French institutions and companies. The pandemic certainly has consequences for our bilateral relations, because a drop in economic activity has been recorded, and the number of inquiries we receive from French companies has also decreased. On the other hand, our large joint projects have suffered hardly any setbacks. At the end of May, an intergovernmental agreement was signed on a donation of 8.3 million euros to Serbia from France, which will enable the completion of feasibility studies for the first phase of the project to build a metro rail system in Belgrade. This signing is a significant and tangible stage in this symbolic and long-term project, and shows the commitment of the French government and companies to support Serbia until the completion of this project. Likewise, works on the incinerator in Vinča are pro-

er in large numbers and open the week by commemorating the French-Serbian friendship and trying to at least end one complicated year joyfully.

How will the CCIFS work in cooperation with colleges this year, and what will happen to the student work placements traditionally offered by French companies? - The French-Serbian Chamber of Commerce last year signed a Memorandum of Cooperation with the University of Belgrade and accordingly initiated, just before the declaration of the state of emergency in Serbia, in cooperation with the University Career Development Centre, a panel discussion for students, “Skills of the Future”, in which panellists included representatives of the Chamber’s member companies who spoke about relevant topics related to employment, skills and abilities that make it easier for young people to secure employment, the impact of new technologies on jobs in the future, and about global connectivity. As far as the work placements are concerned, we regularly receive CVs of students from Serbia, but also from France, which we regularly forward to members in the case that they need interns. We will continue to connect our members with universities, also through the organisation of an online job fair under the scope of French Week and other events for students, in collaboration with members. 17

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BUSINESS

PRISCILIA DUBOCAGE, MANAGING DIRECTOR OF TOTAL HUB BALKANS

10 Years And Counting Total is one of the largest French companies and one of the four most successful oil companies in the world, with more than 100,000 employees in more than 130 countries on all continents. It is celebrating its 10th anniversary in Serbia and is still the only major oil brand with a direct presence in the country

When you took over the position of MD from your preafety, respect for others, a pioneering spirit, the power of solidarity and a taste for performance decessor Almila Acan Kahvecioglu, you took over part of symbolise important parts of the identity of the her plans, but also brought some of your own. Are you Total Group. These values guide our actions and our satisfied with the speed of their realisation? relationships with our stakeholders, and we will continue - One year ago we discussed our future plans related to to justify the trust of our local commarket expansion of our high quality munity, says Mrs Dubocage. Total has become a brand products and our most important projects. In 2020 we have successfully of choice in this area launched our global “New Lub Project”, Total is celebrating 10 years of operthe most important initiative in the ations in Serbia, while you are celeby creating value for each lubricants segment. Our ranges of lubrating a year in the position of genand every customer, and eral manager. Two nice reasons to celbricants have been entirely revamped to offer a high level of efficiency and ebrate, right? We are sure you have we are proud of that innovation. reasons to be satisfied and proud... The TOTAL QUARTZ Auto Service network, a con- We are celebrating our 10th anniversary, still as the only major oil brand with a direct presence in Serbia. I am cept that reflects high quality service and a distinct glad that we made this choice, justified with the market visual identity, typical of partner auto services in Total’s potential, the recognition of our customers and partners network, is growing. Our industrial products market is for the quality of our products and services, as feedback expanding as well. We are particularly proud of FOLIA, that we can measure in our constant growth during these our revolutionary liquid used for metalworking, which is years. Having this proximity to customers has helped us showing significant growth. to better understand their needs, enabling us to design All of these projects gave us the possibility to pursue solutions for them. our wish to expand our presence in the region and we are

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satisfied with the speed of growth and dedication shown during this economic slowdown. How do you assess the potential of this region, this market for which you are in charge? - We were able to ensure great achievements in this region, by performing our everyday operations based on our core values. During these 10 years, we have learned about the local market, presented high quality products that cover the market’s needs, and customers have respected that. I am optimistic, based on our results, and am looking forward to the growth of the both region and us, as a part of it. You are focused on maintaining product quality, but also on social responsibility projects. Do both contribute to maintaining the strong position you have in the region? - By being close to our customers, we are able to hear not only their product-related needs, but also a wider range of needs of our community. As one of our core values is the power of solidarity, we view socially responsible behaviour as part of our everyday business, and, yes, this approach has an impact on our strong position in the region. This year we recognised the precious contribution of paramedics and decided to donate lubricants to The City Institute For Emergency Medical Services, for their ambulance vehicles, to support them during the peak of the pandemic. TOTAL is the only major oil brand that is directly present in Serbia. Thanks to that, do we get a service and products of the same quality as consumers from the most economically developed countries? - Our customers in Serbia are able to get TOTAL quality standards like anywhere in the World. Depending on different needs and our market insights, we are able to recognise those needs and offer suitable product ranges and services. As the needs are changing and growing, we are expanding our offer. Over these 10 years we have built a high-quality portfolio tailored to the local market. Can you tell us more about your current projects, such as the new packaging and the TOTAL QUARTZ Auto Service network, which you run successfully?

- With the “New Lub Project” we present our packaging changes, as well as our new premium product ranges of automotive lubricants. New packaging brought our range efficiency and a premium, distinctive design, all strongly committed to customers and in line with our sustainabilityorientated values. The first positive reactions have already arrived from our authorised distributors, who we’ve been able to rely on during all these years. One of the places where you can also find this new offer is our TOTAL QUARTZ Auto Service network, which has dou-

bled compared to June 2019. With our TQAS Caravan serial, where we present our partners, we believe that our network is well known among customers and potential partners. We will continue to expand where it’s adapted. There is a growing awareness of the need to protect the environment and reduce pollution. Your contribution is reflected in Total’s environmental programme. Tell us more about it ... - Our global ambition is to get to net-zero emissions by 2050, together with society, for our global business across our production and energy products used by customers. Total is already seeking opportunities to reduce our emissions, improve our products and develop new lowcarbon businesses. When it comes to product improvement, one of the improvements brought by our new packaging is related to sustainability. The new packaging allows us to incorporate recycled plastic and less virgin raw materials are used. We’ve already developed product ranges for electric vehicles and TOTAL QUARTZ XTRA range for the latest petrol, diesel or hybrid vehicles requiring fuel economy performance and reduced CO2 emissions. 19

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BUSINESS

MARINA CVIJANOVIĆ, FINANCIAL MANAGER, EKO BIO INVEST

Waste As A Top Raw Material Eko Bio Invest is a company that's starting to conquer the world's markets with products made from a material that represents an alternative to soft plastic packaging – organic fruit and vegetable waste. This material has no harmful effects on humans or the environment, as confirmed by certificates from the EU and the U.S.

his company’s operations represent a textbook example of the circular economy, as they utilise waste as a raw material, creating new products that dissolve in water or decompose in the ground without added additives after use, and can then be used as a fertiliser. Not much is known about your products that are innovative, and perhaps even revolutionary. Can you tell us more about them; present to us what Eko Bio Invest does? - With our partner company, SAG Invest from Paris, we deal with products that are just starting to conquer world markets and that are an alternative to “soft” plastic. This is a material created from organic waste, from fruits and vegetables. It dissolves almost instantly in water at a temperature of 80°C, and decomposes in the ground within a period of 25 days to six months, without the use of additives. It has no harmful effects whatsoever on humans or the environment, which is conformed by laboratory certificates we’ve received from both the EU and the U.S. This material is mainly used to make carrier bags and cling film wrap, while our offer also includes plates and glasses. Our products are classified in the category of biodegradable, but they differ from other products with this characteristic that are already present on our market because they don’t contain any trace of plastic and don’t require special treatment after use, in terms of separation, disposal in specially designed composting tanks or the use of additives. How far have we progressed on the endeavour to produce packaging from organic waste that is completely degradable in water and under the ground? - The solution is already here, it is in our hands! Now we have

ahead of us serious work to familiarise the general public with such products. It will soon become a matter of personal choice whether we opt for a product that isn’t harmful or whether we use one that we know directly damages our health and is harmful to the environment. Instead of continuing, through the food we eat, to ingest three to five grams of plastic a week, which is equivalent to a plastic payment card, we can already use products that don’t have any kind of harmful effects. We also expect an additional expansion of the range, thanks to our cooperation with the excellent team of the Institute of Molecular Genetics and Genetic Engineering. We have agreed double cooperation with IMGGE, in terms of testing domestic raw materials - fruit and vegetable waste generated in the domestic food industry - and in the area of conquering new possibilities and thus new applications for our material. The term “circular economy”, along with the “Take - Make – Reuse” business model, only recently started being mentioned in our country. What are they about? - The common production method is linear and based on the principle “Take - Make - Waste”, but now there is ever increasing representation of the model “Take - Make - Re-use”, I.e. the “circular economy”. Awareness of the limited nature of resources and the need to preserve the planet is leading ever more companies to switch to a closed-loop economy, or a renewable economy. Productivity is thereby increased, everything is used longer, and there is almost no waste. Renewable resources are used, the shelf life of products or components is extended, waste becomes a raw material, new values are created along with reduced costs, operations depend on research, development and digital technologies, alongside design for the future.

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BUSINESS

MIRJANA LUČIĆ, GENERAL MANAGER AT WEBER SRB, BIH, MNE

We're Growing Quickly And Efficiently The Saint-Gobain Group is a multinational group of companies, founded in 1665 in Paris. It is focused on the construction material markets, with the aim of advancing possibilities for the construction of residential and commercial buildings, energy savings and sustainable development

e will invest even more in production capacities and expanding our range. We want to become a market leader thanks to our innovative solutions and services based on the winning combination of top local knowledge and international experience, announces company Weber. The Saint-Gobain Group has existed for over 350 years and has been present in Serbia since 2002, with two factories and over 100 employees. What did the development path of your company look like? - The group started operations as a manufacturer of mirrors, while it is today engaged in the design, production and distribution of various construction and high-performance materials used in many industries. Since its establishment to this day, the basic aspects of the Group’s development have been inventiveness and innovation. As one of the world’s 100 most innovative companies, the Saint-Gobain Group collaborates with world-renowned universities and research centres, all with the aim of constantly improving its products. The Group is today among the world’s leading industrial groups, operating in 68 countries and with more than 180,000 employees and sales revenues of 42.6 billion euros in 2019. Proof of its constant technological devel-

opment is the fact that one of the Group’s four products didn’t even exist until five years ago. The group protects an average of around 400 patents per year, while the annual budget of its research and development sector total approximately 1.85 billion euros. The Weber company became part of the international Saint-Gobain Group in 1996 and was itself founded in France in 1900. Weber operates in 68 countries around the world. The Saint-Gobain Group is today represented in Serbia by three subsidiaries: Isover, Rigips and Weber, with over 100 employees. The majority of employees work on Weber activity. What distinguishes your products from the offers of competing companies, and there are undoubtedly ever more of them? - The main characteristic of all solutions offered by Weber is top quality, as a result of many years of market experience. Innovation is also a very important point in the strategy of Weber and Saint-Gobain. Our group invests constantly in research and development. We offer customers on the local market solutions that have been developed and applied in other countries where Weber operates, such as Germany, France, Italy, Spain, Turkey and many more. Utilising our vast international experience, we operate

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locally, with an absolute understanding of customers’ needs and requirements. We are the perfect example of the philosophy “think globally, act locally”.

a facade in a photographic image of their building, in order to ease the process of deciding on the choice of material.

Your strategy is to continue your strong growth in the region, to invest in production capacities and expand In line with the digital transformation process that has the product range. How much will you rely on your own entered every pore of our lives and businesses, you capacities in doing that, and how much on the fact that have created the Weber - majstorica app. Can you tell you are part of a large and powerful us a little more about that? French company? - “Weber - majstorica” is the first apWe’re currently the only - Almost all of our products are made in plication of its type on our market. Serbia. In Serbia we offer solutions for We developed it because we want company in the sector in facades, ceramics adhesives, grouts, to connect more with craftsmen, and this region to have two interior smooth plasters, paints for aplicatiors or installer on the markets production facilities interiors and facades, as well as prodof Serbia, Montenegro and Bosniaucts for floors. We import items from Herzegovina who use our materials the Rigips, Isover, Adfors, Glass, Abrasives and Ecophone every day. The speed of exchanging information between production programmes from our factories in Europe. In producers and users, as well as the preparation of proposline with the Group’s global strategy, we’re focused on enals for improvements based on information collected, is ergy saving, environmental protection and CO2 reduction. the starting point for all successful cooperation. Given that Saint-Gobain construction materials Ltd. Our aim is to continue working to improve the “Weber Belgrade is supported by an international group, its financial majstorica” app and to increase the number of its users, all security enables us to grow quickly and efficiently. Our in order to better satisfy the needs of our customers. The goal is to become a reliable partner on the local market “E-Study” digital tool is in the final stage of development, in all of our strategic activities. which will enable our users to visualise the appearance of

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INTERVIEW

MANUEL BOUARD, DIRECTOR OF THE FRENCH INSTITUTE IN SERBIA

THE SERBIAN YOUTH Is Our Priority The health crisis compels us to consider new models of cooperation. We are working on the development of digital programmes that will complement existing ones and find their audience through adaptation to suit the needs of the modern world, says Mr Manuel Bouard, director of the French Institute in Serbia

anuel Bouard, counsellor for cooperation and culture at the French Embassy in Belgrade and, as of recently, director of the French Institute in Serbia, does not face an easy mission. Specifically, he is expected to bring even further improvements to the already extremely high-quality programme and work of the institution he heads. That provided ample reason for our interview. As a counsellor for culture at the French Embassy in Serbia, you are familiar with the local culture scene. How would you describe it; what would you emphasise and what would you criticise? - Many young creative artists provide dynamism to the artistic life of Serbia, and that is encouraging. We are especially joyful about the increasing presence of women in the world of comics, as well as in the field of fine arts. We follow them with enthusiasm. It is necessary for that independent scene in Serbia to be more visible. We are here to support the establishing of professional partnerships with the French cultural milieu. But culture in Serbia certainly also lives thanks to the Serbian institutions with which the French Institute regularly cooperates. The French Institute has a recognisable and successful programme in Serbia. Will you initiate some changes aimed at improving it even more? - Our long-term goals have not changed: we are working to promote cooperation and partnerships in the domains of culture, linguistics and science. We attach special importance to the decentralisation of events and the revival of cooperation across the entire territory. Many travelling projects, such as the French Film Caravan or the Climate Caravan, are appearing throughout Serbia, thanks to our branches in Niš and Novi Sad. However, the youth of Serbia is still our priority, because they are the future of the country and the future of French-Serbian

relations. And that’s why a large number of our projects are directed towards them. I would emphasise two strategic goals: defending the French language represents our traditional mission, but that language should no longer be considered only the language of culture. Over 300 million people speak French. It is a language that enables travel and work in France, but also in Africa, Canada and many other countries. And that’s why we will work even more to highlight its advantages for the professional life of individuals. Secondly, the health crisis compels us to consider new models of cooperation. We are working on the development of digital programmes that will complement existing ones and find their audience through adaptation to suit the needs of the modern world. The state of emergency declared during the pandemic is, unfortunately, still a current topic due to the cancelling of plans and activities in all areas, including culture. How will you try to overcome the break in activity? - Encounters are the heart of our work. It is a genuine form of suffering for artists, for people from the world of culture and ideas, that they cannot travel and make contact with the audience. An entire way of life has been brought into question. That’s why we need to establish new links between our cultures, to focus on research, starting with the digital kind, which will enable respect for the imposed measures of distancing while still enabling debates and exchanges of opinions, which represent a source of creativity and a better life. The digital world and the world of social networks are our allies in this difficult time. Thus, French language courses are no longer held only at the French Institute, but also at a distance. These are the beginnings of our digital offer. Francophonie, the trademark event of the Institute, was this year held in a form adapted to the situation imposed by the Cor-

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By SONJA ĆIRIĆ

onavirus. The positive side of that change is that our translators of French literature have been to the fore. Do you agree? - Paradoxically, the health crisis shed light on the exceptional role of Serbian translators and their impact on the quality and intensity of cooperation and exchanges of ideas between Serbia and the Francophone world. The book is in the first place today... it is resistant to the social distancing measures imposed by the crisis! The work of translators is generally poorly acknowledged. And actually what they do is of essential importance, which we could see for ourselves during the Molière Days festival of literature that we managed to implement as soon as the state of emergency in Serbia was lifted. We showed the incredible wealth of translations of Francophone authors available to Serbian readers. Hundreds of the latest translations of authors from as many as 18 Francophone countries were exhibited at our Francophone Book Salon. However, the health crisis also hit the publishing world. The French institute will continue to support this sector, which represents one of the main pillars of our mutual cooperation. The mission of every foreign culture centre or institute is to promote its home country through its culture. The latest programme of the French Institute to that end is the French Film Festival at the Drive in Cinema. Is this a sign that you’ve assigned contemporary art with the role of promoting good relations between our two countries? - It is a fact that contemporary creativity provides the basis for strengthening mutual ties. The Festival of French Film is this year simultaneously taking place online and under the open sky, on Ada Ciganlija. This is just one example of our support for contemporary art. Seven French fine artists will present themselves at the October Salon, thanks to our partnership with the Belgrade Cultural Centre. One Serbian artist will soon take up residence at the International Centre for Comic Strips in Angoulême. All of this testifies to the importance we attach to contemporary creativity.

French National Film Centre, FEMIS and well-known production and distribution companies. The agreement on co-productions, which was renewed by the governments of our two countries last year, reflects the vitality of our relations in this area. Since my arrival, the French Institute has signed an agreement with the Centre for the Promotion of Science in Serbia that relates to the promotion of scientific culture and the development of awareness about environmental protection among young people. Under the scope of the promotion of Francophonie, an agreement was signed with the National Museum in Belgrade on the publishing of a French version of its catalogue. We have been cooperating for many years with Matica Srpska. Novi Sad will be the capital of European culture in 2021, and we are participating in the

Over 300 million people speak French. It is a language that enables travel and work in France, but also in Africa, Canada and many other countries

Have you already established cooperation with some institutions in Serbia and, if so, on what grounds and to mark which occasions? - We exist thanks to partnerships. Those that enrich French-Serbian relations should be nurtured, while new ones should also be created. Our two countries attach great importance to film art, and thereby also cooperation in that area. Many partnerships have been established between the Film Centre of Serbia, the

celebrations by establishing a partnership with the Novi Sad 2021 Foundation. These are just a few examples that illustrate the dynamism of cooperation. And we will continue to develop it.

What would you single out from your planned programme until the end of the year? - In addition to the aforementioned, I would also single out the following events: on 23rd September a football tournament will bring together Belgrade high school students who are learning French, and its patron will be Mr Ćurković, a former president of the Serbian Olympic Committee and Partizan Football Club; The Francophone Careers Salon, which will be held on 28th October in Niš, will be an opportunity to present to students the advantages of the French language for studying and pursuing a career. The Digital November event will take place from October to December and will provide an opportunity to highlight new information and communication technologies; the Climate Caravan, a project that we’re leading in cooperation with the European Union and that will this year start in Svilajnac in July, will travel around the whole of Serbia until the end of the year, in order to encourage young people to consider climate change. 25

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BUSINESS

DRAGAN MILIĆ, KEY ACCOUNT MANAGER, LGCF

We Offer Serbia 200 Brands LGCF was established in France in 1979 as a family company, while it is today the largest producer of wines in Europe. The company's production capacity totals three million bottles per day, while its products are distributed in 173 countries worldwide. With excellent results and major plans, LGCF is this year celebrating two decades of operations in Serbia

ur market desires education and innovation, and we are here to provide that, together with our partners, through training courses, wine tastings and wine evenings. We try to ensure that the staff who sell our wines are sufficiently trained to present them in the right way to clients from the hospitality sector and consumers. LGCF has been present in Serbia for 20 years. How many brands does your portfolio in our country currently include? - In our portfolio available to consumers in Serbia there are about 300 different labels, or 200 different brands of wine and spirits in all pricing categories. When it comes to the portfolio, I must emphasise that, in addition to the top French wines that we produce, we also offer consumers Grand Cru Classe wines, as well as wines from other wine regions, such as those of Chile and California, which are extremely well received in Serbia.

Domaine de la Ville de Colmar from Alsace, Domaine de Tholomies from the south of France, Moillard from Burgundy and many others. To what extent are our fellow citizens wine connoisseurs, and how much do people in the hospitality sector know? Are we prepared to learn? What is your favourite wine and which part of the world does it come from? - The average consumer in Serbia is far from an educated consumer, but there is a clear desire and intention to learn. If we compare the current level of knowledge with the level from a few years ago, progress is evident. Previously only people like sommeliers were interested in wines and the wine scene, while now we have consumers from whom even we can learn a lot. There is also noticeable progress when it comes to the hospitality sector, as they show a willingness to invest in their employees. They are great hosts who love everything and bring joy to everyone. What they have to work on further is education. They also have to do additional work on the pricing policy, in order for wine not to become a product for the rich. It is absurd to pay more for a glass of wine in a restaurant than for dinner. I consider that as being one of the main reasons why the consumption of wine in Serbia is significantly below the level of consumption in other neighbouring countries. I’m a big fan of red wines from the south of France, especially from the Minervois appellation. The level of alcohol, tannins and aroma are perfectly balanced to ensure they provide top wines. One such wine, which is sold in Serbia, is Domaine de Tholomies. And for times when the weather is nice I would recommend Fleurs de Prairie, a real summer wine that comes to us from Provence.

Our brands Agavita Tequila and Lordson Dry Gin are ranked among the top three brands in their categories in Serbia

Where can all your wines be found? Only in exclusive restaurants and wine shops, or are they also sold through the retail network? What sells best in our country? - Our wines are available through all sales channels. And they occupy a significant place wherever they “appear”. When it comes to the retail sales channel, I would definitely single out the JP brands. Chenet, the world’s best-selling French wine, including in Serbia, Grand Sud, a wine from the south that people in Serbia rate exceptionally highly, Baron D’Arignac is present at a large number of celebrations, El Emperador, the best-selling wine from the new world in Serbia. I would certainly single out the proud representatives of France in restaurants nationwide throughout our country Chateau Lestage Simon and Chateau Cantin from Bordeaux, 26

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KSENIJA KARIĆ, CEO, SCHNEIDER ELECTRIC SERBIA AND MONTENEGRO LTD.

BUSINESS

Savings Are The Biggest Advantage Of Digitalisation Schneider Electric is among the leaders in the field of automation and energy management. Company’s business is based on developing innovative solutions that target end users in terms of the quality of services it provides and the development of the local economy, through the expansion of its network of local partners

ur solutions contribute to improving the operations of our clients, changing their daily routine and creating opportunities for business innovation. With these solutions it is possible to achieve savings from 20 to as much as 80 per cent, reveals the new CEO of Schneider Electric Serbia and Montenegro Ltd. Congratulations on your appointment as CEO. You stated upon taking over this position that the priorities will not change. What expectations and plans do you have as you start leading the company? - Thank you for the congratulations. Priorities are not changing, as Schneider Electric’s business is based on developing innovative solutions in the field of automation and energy management, targeting end users in terms of the quality of services we provide and developing the local economy by expanding our network of local partners. This is something that’s an enduring value of Schneider Electric and a principle that we are not abandoning. In this regard, it also reflects my expectations and further plans. It is for this very reason that I am convinced that in the future, no matter what challenges we face, we will continue to improve our products and services, securing the quality for which we are recognised.

and often neglects the biggest advantage it brings us – and that is savings. Moreover, it is important to keep in mind that digitalisation is not solved in one day, but is rather a long-term process in which a company prepares for the future and the challenges that lie ahead. Schneider Electric’s solutions contribute to improving our clients’ operations at multiple levels, by changing their daily routine and creating opportunities for business innovation. With those changes it is possible to collect large amounts of data from the systems themselves, to control and manage processes and energy consumption, analyse all collected data and, of course, realise great savings, from 20 to as much as 80 per cent. Your innovative solutions, such as the EcoStruxure platform, easily find their way to users. Where has it been implemented to date? - The EcoStruxure platform is based on Internet of Things (IoT) technology and serves as a basis for managing, running, automating and optimising systems locally or in the cloud. It combines all three levels - data collection, control and analytics. Our company has developed six “specialist” architectures according to area of application - EcoStruxure Building, EcoStruxure Plant, EcoStruxure Machine, EcoStruxure Grid, EcoStruxure IT and EcoStruxure Power, which have already found broad application in various industries. Although our platform is used worldwide, I will stick with the local market - our EcoStruxure solution has been implemented in Serbia by Nikola Tesla Airport, the hotels Hilton and Sheraton, the Green Heart GTC commercial building and the operations of others satisfied clients.

We have a team of excellent people, proven experts in their work, so I believe that we will achieve excellent results together

How do you help large industries and all of their users to keep up with trends in digitalisation? Can software from your portfolio accelerate the growth of your clients and help them operate sustainably and with significant savings? - Digitalisation primarily implies the use of digital technologies,

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BUSINESS

SOMBOLED

Somboled - A Synonym For Successful Cooperation Between Serbia And France In The Dairy Industry

Enduring cooperation in the service of producing the highest quality products

he world’s leading dairy group, France’s Lactalis Corporation, has been represented in Serbia since 2007 by company Somboled - one of the country’s most famous and successful companies in the production of milk and dairy products. Thanks to it belonging to this French group, as well as decades of experience in the production of dairy products and a tradition dating back to 1934, Somboled possesses the expertise that places it at the very top of the dairy industry. Known for the freshness of its products and the preservation of its natural ingredients, this company brings a rich range of dairy products to the Serbian market, from milk, yoghurt and sour cream, to various types of cheese and other products. For the production of milk and yoghurt under the scope of the Dukat brand, domestic raw materials are used exclusively, while membership in the Lactalis Group has enabled Somboled to bring the assortments of world-famous brands President and Galbani to the Serbian market. As such, consumers in Serbia today have available Mozzarella and Mascarpone from Italy, Roquefort, Camembert and Brie from France, as well as many other cheeses. Apart from this, the President brand has been enriched with domestic dairy products, such as President Sombor cheese and spread, President Kajmak and President Pannonian white cheese. Somboled’s range was last year supplemented with the re-launched brand of the same name - Somboled, within the framework of which fresh milk and yoghurt are produced using local raw materials.

CONTINUOUS COOPERATION WITH FARMERS EVEN UNDER DIFFICULT CONDITIONS The tradition of producing the highest quality milk and dairy products has been preserved thanks to numerous subcontractors with which Somboled has long-term cooperation. The company today cooperates with 700 domestic farms, from which it buys raw milk in bulk. Even during the recently lifted state of emergency caused by the Covid-19 virus pandemic, the company maintained cooperation with all farmers and the regular purchase of milk at unchanged prices, supporting the sustainability of their operations during that period. In accordance with this, all aspects of production, distribution and sales unfolded unhindered. Employees in all sectors of the company were provided with safe working conditions, which resulted in maximum safety in the production and distribution of dairy products, from the factory to the consumer. During the state of emergency, Somboled exerted great efforts to ensure continuous production and the regular supplying of retail chains, without reducing the number of employees or lowering the bulk purchase price of milk. Moreover, in order to help the state in the fight against the pandemic, Somboled donated five million dinars to the National Health Insurance Fund for the procurement of respirators. Somboled continues to prove that it is one of the leading companies in Serbia in the field of milk processing and the production of dairy products, as well as that stable operations under all conditions is a priority, with the aim of providing consumers with their favourite dairy products of the highest quality.

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CCIFS Activities

The leading FrenchSerbian business network, the French-Serbian Chamber of Commerce, is an institution that brings together French companies in Serbia, as well as Serbian and other international companies that maintain trade relations with France or French companies. The Chamber is also a reliable partner to all companies from France wanting to obtain information about Serbia or launch operations in the country

The main role of the CCIFS is to enable its members to access its network of companies and exchange experiences and knowledge, establishing cooperation with other members in Serbia and around the world. In order to promote economic exchanges between France and Serbia and enable communication between member companies, the CCIFS organises about 40 different events annually.

Start-up Accelerator The CCIFS successfully implemented its Start-up Accelerator competition for the third consecutive year, representing a programme of free mentoring support for start-ups and enterprises established no more than a year ago. The White Lemur start-up was selected, with its SOMA project, which deals with the production of biodegradable material from agricultural waste to re-

place polystyrene in industry. During 2020, the winner will enjoy the support of the CCIFS Management Board, directors and managers of the largest French companies operating in Serbia, who will use their experience, contacts and ideas to help this start-up develop its business. The winner also gains the right to membership in the Chamber, thus increasing its visibility and expanding its network of contacts. Panel discussion “Skills of the future” The French-Serbian Chamber of Commerce, in cooperation with the Career Development Centre of the University of Belgrade, organised a panel discussion for students entitled “Skills of the Future”, held in the Ceremonial Hall of the University Rectorate. The CCFS last year signed a Memorandum of Understanding with the 29

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Informative updates were also sent on a weekly basis, featuring key general and economic information that drew parallels between France and Serbia. Furthermore, there has been the continued unhindered staging of online meetings of clubs (Transport and Logistics, Infrastructure and Construction, CFO, HR, Digital and CSR), during which members exchanged experiences and advised each other about how to respond to various market demands during the time of crisis.

University of Belgrade and accordingly initiated a panel discussion for students, at which panellists, representing CCFS member companies, spoke about relevant topics related to employment, skills and abilities that ease the employing of young people, as well as global connectivity and the impact of new technologies on jobs in the future. The event was opened with a welcome address given by Ivanka Popović, Rector of the University of Belgrade. Monthly activities The Chamber organises three to four events per month, of varying formats, which represent an opportunity for members to meet, inform one another and, of course, enjoy socialising together. At the beginning of this year we thus organised a workshop on the French anti-corruption law Sapin II, as well as a series of online training sessions within the scope of our Training Centre. Faced with the newly emerged situation caused by the coronavirus outbreak, we changed the format of the event and for the first time this year launched a series of webinars organised for our members. The topics mainly related to the impact of the coronavirus outbreak on business, among which we would single out Business during the coronavirus, Impact on agricultural and the food industry, Managing human resources during the pandemic, Government measures for companies: from the perspective of banks etc. Moreover, in cooperation with colleagues from six French chambers in the region, we organised regional webinars: Central Europe - what are the prospects for the supply chain? and The Processing Industry - a chance for Central and Eastern Europe, which brought together over 500 participants.

Launching the campaign “How can we help you?” In the context of the outbreak of the Coronavirus pandemic and the crisis that gripped companies in Serbia, all with the aim of carrying out our main activity of supporting members, the French-Serbian Chamber of Commerce launched a campaign entitled ‘How can we help you?’. Throughout the duration of the state of emergency and afterwards, the entire team at the CCFS was available to members at all times, to provide them with the best possible assistance and support during the crisis period. The French-Serbian Chamber of Commerce was the initiator in directing an open request to Economy Minister Siniša Mali seeking the implementation of ad-

ditional measures to support small and medium-sized enterprises. That initiative was supported by 12 other bilateral foreign chambers of commerce and organisations in Serbia. At the same time, in agreement with member companies from the construction sector, the CCIFS sent a letter to the Ministry of Construction, Transport and Infrastructure with proposals to ease the conducting of business prompted by the Covid-19 virus pandemic. A survey was also conducted to assess the impact of Covid-19 on the operational and financial activities of CCFS members on the Serbian market, the results of which will be made available to members, with a press release to be sent to the media. Support services for French companies The French-Serbian Chamber of Commerce is working continuously to provide support to French companies wanting to develop business activities in Serbia. We help companies from France in researching market potential, finding clients and partners, opening branches and their general expansion on the Serbian market. The CCIFS is

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Business Centre at our premises in the heart of Belgrade, which has an offer including offices and office space in a co-working area, virtual offices and conference rooms in a unique French touch environment. Companies can register a firm at our address, or rent a desk for a certain period with access to the complete logistics, business and networking offer of our Chamber.

ranked in the third, highest category within the network of French chambers of commerce abroad, as it provides a complete service to French companies interested in the Serbian market: from initial information about the market, to opening and assisting in the running of an enterprise. The chamber has already been operational for eight years and has been an official partner of Business France, the national export promotion agency of France, since 2019. Activities in France The French-Serbian Chamber of Commerce is regularly active in France, through participation in B2B meetings under the title Presenting Serbia in France, organised by French regional chambers. During 2020 this format of events switched to the online format and continued at the same pace.

We are also present in France through the CCIFS directorâ&#x20AC;&#x2122;s participation in the work of the Consultative Board of French Chambers of Commerce Abroad, which she was selected to become a member of in 2017, and which works on the reform of French foreign trade support. Thus French companies that want to internationalise will in future have simplified access to each market, through the one-stop shop principle.

As an added benefit, by taking up residence at our LeBooster Centre, individuals and businesses become part of our business community and have access to our network of contacts, as well as the many events we organise. French Week This is one of the Chamberâ&#x20AC;&#x2122;s most important events, which aims to promote French products, expertise and culture, through a series of events organised at various locations in the capital and beyond. The goal of French Week is to promote historical, cultural and business ties between France and Serbia, and the period during which it is held is connected to a widely popular custom in France - the reception of young French wine, Beaujolais nouveau. The broad and diverse contents of the event provide guests with the opportunity to participate in traditional French Week events; to learn some of the secrets of French cuisine, to taste good wine at the reception of Beajolais nouveau young wine, to sample famous French cheeses and other delicious delicacies. Last yearâ&#x20AC;&#x2122;s edition of the Online Employment Fair at www.francuskanedelja.rs was marked by a record 9,500 visits. French Week begins on 19th November 2020.

LeBooster - Business Centre CCFS Within the scope of our support for start-ups and enabling French and Serbian companies to more easily integrate on the local market, we opened the LeBooster 31

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GUIDE TO FRENCH ORDERS, DECORATIONS AND MEDALS

This brief overview of French orders, decorations and medals testifies to both the virtues that are worthy of awarding and the historical circumstances under which these decorations were established, but also the values promoted by the French state. In addition to prominent individuals, in exceptional cases these decorations can also be awarded to cities

haleristics is an auxiliary science of history and numismatics that studies award decorations, their origin, development, organisational and legal characteristics, aesthetics, artistic expression and the social circumstances in which such decorations were introduced. This is a brief overview of French orders, the moments in history when they were introduced and the ideas that prompted their introduction.

THE NATIONAL ORDER OF THE LEGION OF HONOUR (ORDRE NATIONAL DE LA LÉGION D’HONNEUR) The highest French decoration, which was established on 19th May 1802 by Napoleon Bonaparte, who was then First Consul of the First Republic, as a recognition of military or civilian merit regardless of the origin, religious affiliation or place of birth (homeland) of the recipient (at the time this was a revolutionary idea that was completely in line with the ideas of the French Revolution), under the condition that the candidate to be decorated is committed to the fundamental ideas of the French Revolution, which were freedom, equality and fraternity. In line with Napoleonic ideas and ideals, membership in the National Order of the Legion of Honour is extremely egalitarian: recipients can be both women and men, civilians and military personnel, regardless of rank, status, birthplace or religious affiliation, so in principle people of any status can become members of the Order of the Legion of Honour. This Order is awarded in the ranks of knight, officer, commander, grand officer and grand cross. 32

Médaille Légion d’Honneur Ordonnance Chevalier

How Belgrade Has Been Decorated

In order to be nominated for the Order of the Legion of Honour (as a rule, a person cannot submit their own candidacy, but the Order can be entered posthumously, which was introduced after World War I), a person must have amassed 20 years of exceptional merit during peacetime (this applies to civilians) or to show exceptional courage during wartime (this applies to military personnel). The Order of the Legion of Honour for War Merit automatically includes the awarding of the Cross of War (Croix de Guerre), France’s highest military decoration. The Order of the Legion of Honour has 92,000 members. A total of 2,800 people can be decorated annually, both for military and civilian merit, with the award able to be granted to a maximum of 320 foreigners who, unlike French nationals, cannot be members of the Order. The motto of the Order is Honour and Motherland (Honneur et Patrie), and the seat of the Order of the Legion of Honour is in the Palace of the Legion of Honour (Palais de la Légion d’Honneur) situated on the left bank of the Seine in Paris. In exceptional cases, this order can also be awarded to a city, which was the case when French Marshal and Honorary Duke of the Serbian Army, Franchet d’Espèrey, presented this recognition to the City of Belgrade on 21st December 1920. Apart from Belgrade, only a few other cities outside France have received this decoration: Liege (Belgium), Luxembourg (Luxembourg), Volgograd (Russia), Algiers (Algeria), Brazzaville (Congo) and the latest in the group, London (United Kingdom), which received the award on 18th June this year.

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ORDER OF CHIVALRY (ORDRE DES ARTS ET DES LETTRES)

Arts et Lettres Chevalier

This decoration is mostly awarded to crown the realisation of a person’s career in the field of art and literature, with the recipient having already achieved their greatest results. However, it is sometimes awarded as a stimulus to youth, in order to encourage zeal, courage and an innovative spirit, which are necessary instigators of changes in our view of the world. The order is awarded by the French Ministry of Culture to “persons who have distinguished themselves through creativity in the fields of art or literature and thus contributed to the artistic and cultural heritage of France and the world”. Established in 1957, it “prompts respect and envy among artists, writers and creators”, according to André Malraux. It has three ranks, knight, officer and commander. This decoration is annually awarded to 450 new knights, 140 new officers and around 50 commanders worldwide, which is a relatively small number compared to many other decorations, making it even more prestigious.

Palmes académiques Officier

Ordre National du Mérite Chevalier

The National Order of Merit is a very important and prestigious French decoration that was established in 1963. French President Charles de Gaulle used it to replace a series of other decorations that had existed until then. It is awarded for special merit, on behalf of the President of the Republic of France, to both foreigners and French citizens, in the ranks of knight, officer, commander, grand officer and grand cross.

ORDER OF ACADEMIC PALMS (ORDRE DES PALMES ACADÉMIQUES) The Order of Academic Palms is awarded on behalf of the French Ministry of Education to prominent individuals who have contributed, and continue to contribute, to spreading knowledge and education, including internationally, and in particular to strengthening ties that unite two countries. This decoration, established more than 200 years ago, is awarded to French nationals and foreigners for their scientific and professional commitment, and their contribution to strengthening France’s global reputation. The decoration was established by Napoleon Bonaparte as an acknowledgement of eminent members of the University of Paris. Foreign nationals have also been able to receive this recognition since 1866. The Order of Academic Palms has had three ranks since 1955: knight, officer and commander. HONOUR MEDAL OF THE NATIONAL POLICE (MÉDAILLE D’HONNEUR DE LA POLICE NATIONALE) This decoration, established in 1903 at the request of Émile Combe, then French interior minister, is intended primarily for French civil servants who have achieved exceptional results in the performance of their duties, or for those who have amassed 20 years of impeccable interior civil service. In exceptional cases it can also be awarded to foreigners who have contributed greatly to the work of the French national police. Since 2013 this medal has had two degrees - gold and silver. Médaille d’honneur de la Police nationale

NATIONAL ORDER OF MERIT (ORDRE NATIONAL DU MÉRITE)

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CHARLES BAUDELAIRE, 1821–1867

Baudelaire Remains Strange is the fate of the poet Baudelaire: in his own time he was neither understood nor accepted, and was renowned the least. But as time passed, so his poetry became ever more influential. From it sprouted symbolism. It seemed that he reached the zenith of his fame at that time through his followers Mallarme, Verlaine, Rimbaud, Apollinaire and Breton. That wasn't the case. As time goes on, Baudelaire becomes increasingly famous. His rise does not cease, his currentness is timeless. André Gide was undoubtedly correct when he said: “Fashion passes, critics likewise, while Baudelaire remains” (Jovan Hristić)

he son of Joseph-François Baudelaire and Caroline Archimbault-Dufays, Charles Baudelaire was born in Paris on 9th April 1821. Baudelaire’s father, who was his mother’s senior by thirty years, died when the poet was just six. Baudelaire was very close to his mother (much of what is known of his later life comes from letters that he wrote to her), but was deeply distressed when she married Major Jacques Aupick. The family moved to Lyon in 1833, where Baudelaire attended a military boarding school. He was kicked out of the school shortly before graduation for refusing to give up a note passed to him by a classmate. Baudelaire spent the next two years living in the Latin Quarter of Paris, pursuing a career as a writer and accumulating debt. It is also believed that he contracted syphilis around this time.

In 1841 his parents sent him to India by ship, hoping the experience would help reform his bohemian urges. He left the ship, however, and returned to Paris in 1842. Upon returning, he received a large inheritance, which allowed him to live the life of a Parisian dandy. He developed a love for clothing and spent his days in the art galleries and cafes of Paris. He experimented with drugs, such as hashish and opium. He fell in love with Jeanne Duval, who inspired the Black Venus section of Les Fleurs du mal. By 1844, he had spent nearly half of his inheritance. His family won a court order that appointed a lawyer to manage Baudelaire’s fortune and pay him a small “allowance” for the rest of his life. To supplement his income, Baudelaire wrote art criticism, essays and reviews for various journals. His

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early criticism of contemporary French painters, such as Eugene Delacroix and Gustave Courbet, earned him a reputation as a discriminating if idiosyncratic critic. He published the autobiographical novella La Fanfarlo in 1847. His first published poetry also began to appear in journals in the mid-1840s. He published translations of the works of Edgar Allan Poe, whom he dubbed a “twin soul”, in 1854 and 1855, with the translations being widely acclaimed. In 1857, Auguste Poulet-Malassis published the first edition of Les Fleurs du mal. Baudelaire was so concerned with the print quality that he took a room near the press to help supervise the book’s production. Six of the poems, which described lesbian love and vampires, were condemned as obscene by the Public Safety section of the French Interior Ministry. The ban on these poems was not lifted in France until 1949. In 1861, Baudelaire added 35 new poems to the collection. Les Fleurs du mal afforded Baudelaire a degree of notoriety; writers such as Gustave Flaubert and Victor Hugo wrote in praise of the poems. Flaubert wrote to Baudelaire claiming, “You have found a way to inject new life into Romanticism. You are unlike anyone else [which is the most important quality].” Unlike earlier Romantics, Baudelaire looked to the urban life of Paris for inspiration. He argued that experienced increasingly poor health art must create beauty from even Writers such as Stephane in 1862. He left Paris for Brussels in the most depraved or “non-poetic” of situations. Mallarmé, Paul Verlaine and 1863 to give a series of lectures, but from several strokes that Les Fleurs du mal, with its explicit Arthur Rimbaud claimed him suffered resulted in partial paralysis. On 31st sexual content and juxtapositions of as a predecessor. His works August 1867, at the age of 46, Charles urban beauty and decay, only added to Baudelaire’s reputation as a poéte were celebrated in the 20th Baudelaire died in Paris. Although maudit (cursed poet). Baudelaire doctors at the time didn’t mention enhanced this reputation by flaunt- century by thinkers and artists it, it is likely that syphilis caused his ing his eccentricities; for instance, he as diverse as Jean-Paul Sartre, final illness. His reputation as poet once asked a friend in the middle of a at that time was secure; writers such Walter Benjamin, Robert conversation “wouldn’t it be agreeable as Stephane Mallarmé, Paul Verlaine to take a bath with me?” Because of Lowell and Seamus Heaney and Arthur Rimbaud claimed him the abundance of stories about the as a predecessor. His works were poet, it is difficult to differentiate fact from fiction. celebrated in the 20th century by thinkers and artists as Baudelaire continued to write articles and essays diverse as Jean-Paul Sartre, Walter Benjamin, Robert on a wide range of subjects and figures throughout the Lowell and Seamus Heaney. 1860s. He was also publishing prose poems, which were Baudelaire’s poetry left a legacy of conciseness posthumously collected in 1869 as Petits poémes en prose and perfection of form, precision and symbolism of (Little Poems in Prose). By calling these non-metrical language, special rhythm and musicality of verse, a compositions poems, Baudelaire was the first poet to gloomy experience of the world and pessimism. Synesmake a radical break with the form of verse. thesia, that most beautiful and richest metaphor, was Baudelaire began suffering from nightmares and created in this poetry. 35